I tried to format the excel sheet. It will not let me upload it. I started the worksheet and got stuck on additional information adjustments and debits and credits.
Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and analysis directed toward the management team at Smart Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA and have proper citations, where applicable.
Smart Company is preparing its financial statements for the year ended June 30, 2017. The financial statements are complete except for the statement of cash flows. You have been asked to statement of cash flows for the year ended June 30, 2017.
Download the excel spreadsheet found in the link below.
- spreadsheet to support a statement of cash flows for the year ended June 30, 2017.
- In the tab named 'Journal Entries', show in journal entry form, the entries that would be made in preparation of the statement of cash flows.
- Prepare Smart Company's statement of cash flows for the year ended June 30, 2017. Prepare the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about noncash financing and investing activities.
You are the accountant for Smart Construction Company, a large construction company in Colorado. You have been presented with the following financial information for Smart and asked to prepare the Statement of Cash Flows for the year ended June 30, 2017. work for the project in this excel file, which includes the following tabs:
1. Facts - Information taken from Smart's accounting records and additional information regarding the cash flows as of June 30, 2017.
2. Worksheet - Worksheet template (also see Example 21.3a in text). 3. Cash Flows - Statement of Cash Flows template (also see Example 21.3b in text).
Account Balances June 30, 2016 June 30, 2017
Cash $ 361,700 $ 880,550
Accounts Receivable 100,000 125,000
Marketable Securities (at cost) 11,700 13,000
Allowance for Change in Value 1,500 1,800
Construction in Process 168,750 405,000
Prepaid Expenses 45,000 10,000
Investments (long-term) - 13,500
Leased Equipment - 20,000
Building 30,000 -
Deferred tax asset 5,375 2,200
Land 10,500 10,500
Discount on Bonds Payable - 1,305
Totals 734,525 1,482,855
Allowance for doubtful accounts $ 6,000 $ 4,500
Accounts Payable 87,500 210,000
Deferred tax liability 1,000 3,300
Income Taxes Payable 3,500 9,000
Note Payable (long-term) 3,500 -
Accumulated Depreciation on Building 2,500 -
Accumulated Depreciation on Leased Asset - 3,000
Lease obligation - 18,000
Interest payable on lease obligation - 1,800
Interest payable (Bonds) - 1,800
Bonds payable - 45,000
Billings on contruction in process 150,000 325,000
Pension liability 150,000 400,000
Convertible preferred stock, $100 par 9,000 -
Common Stock, $10 par 14,000 24,500
Additional Paid-in Capital 8,700 13,700
Unrealized Increase in Value of Marketable Securities 1,500 1,800
Retained Earnings 297,325 421,455 Totals 734,525 1,482,855
a. Dividends declared and paid totaled $650.
b. 300 shares of common stock (at par) were issued for cash.
c. On July 1, 2016, convertible preferred stock that had originally been issued at par value were converted into 500 shares of common stock. The book value method was used to account for the conversion.
d. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the fiscal year.
e. Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by $300 to a $14,800 fair value at year-end by adjusting the related allowance account.
f. During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,500. Ricochet reported $20,000 in net income for the year and paid dividends of $2,000 to Smart.
g. $5,000 of accounts receivable were written off as uncollectible during the year.
h. Smart's inventory consists of Construction-in-Process in excess of the Billings on Construction-in-Process account balance.
i. A building was destroyed by fire during the year and insurance proceeds of $26,000 were collected.
j. The 12% bonds payable were issued on February 28, 2017, at 97. They mature on February 28, 2027. The company uses the straight-line method to amortize bond premiums and discounts.
k. Smart recorded pension expense of $350,000 for the year.
l. A lease agreement was signed on July 1st, 2016 for the use of equipment worth $20,000. The company determined that the transaction should be recorded as a capital lease.
SMART CONSTRUCTION COMPANY
Cash Flows Worksheet
For Year Ended June 30, 2017
Balances Change Worksheet Entries Account Titles 6/30/2016 6/30/2017 Increase (Decrease) Debit Credit
Cash Flows from Operating Activities:
Cash Flows from Investing Activities:
Cash Flows from Financing Activities
Investing and Financing Activities Not Affecting Cash:
Net Increase in Cash
Smart Construction Company
Statement of Cash Flows
For Year Ended June 30, 2017
Adjustments for noncash income items:
Adjustments from cash flow effect from working capital items:
Net cash provided (used) by operating activities
Net cash provided (used) by investing activities
Net cash provided (used) by financing activities
Net increase in cash (see Schedule 1)
Cash, June 30, 2016
Cash, June 30, 2017
Schedule 1: Investing and Financing Activities Not Affecting Cash
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