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BERRY PROBLEMS WEEK 1 BERRY PROBLEM 1 Listed below are a number of financial statement captions. Indicate ON THE TEMPLATE in the spaces to the right...

BERRY PROBLEM 1
Listed below are a number of financial statement captions. Indicate ON THE TEMPLATE in the spaces to the right of each caption (1) the category of each item, and (2) the financial statement on which the item can usually be found.

Financial Statement Captions
Accounts receivable
Cost of goods sold
Retained earnings
Cash
Interest income
Loss on sale of building
Notes payable
Additional paid in capital
Equipment
Long-term debt
Rent expense
REQUIRED:
Use the following letter designations to indicate on the template (1) the category of each item, and (2) the financial statement on which the item can usually be found
(1) Category (2) Financial Statement
Asset A Balance sheet BS
Liability L Income statement IS
Stockholders' Equity SE
Revenue R
Expense E
Gain G
Loss LS

BERRY PROBLEM 2
From the data given below, calculate the Retained Earnings balance of December 31, 2014.
Increase in total liabilities during 2014 33,000
Retained earnings, December 31. 2013 $115,000
Gain on the sale of buildings during 2014 14.000
Dividends declared and paid in 2014 16.000
Proceeds from sale of common stock in 2014 32.000
Net income for the year ended December 31, 2014 141.000
REQUIRED:
Prepare the retained earning portion of a statement of changes in stockholders' equity for the year ended December 31, 2014.

BERRY PROBLEM 3
Volunteer, Inc. is in the process of liquidating and going out of business. The firm has $30,910 in cash, inventory totaling $107,000, accounts receivable of $72,000, plant and equipment with a $192,000 book value, and total liabilities of $307,000. It is estimated that the inventory can be disposed of in a liquidation sale for 75% of its cost, all but 15% of the accounts receivable can be collected, and plant and equipment can be sold for $210,000.
REQUIRED:
(a.)
Calculate the amount of cash that would be available to the stockholders if the accounts receivable are collected, the other assets are sold as described, and the liabilities are paid in full.
(b.)
Describe how the difference between book value and liquidation value would be treated on the final income statement for Volunteer, Inc. with respect to the following assets: inventory, accounts receivable, and plant and equipment. What income statement accounts would be affected when these assets are sold or collected as described above?
BERRY PROBLEM 4
Presented below is a statement of cash flows for Green, Inc., for the year ended December 31, 2014. Also shown is a partially completed comparative balance sheet as of December 31, 2013 and 2014.
Green, Inc.
Statement of Cash Flows For the year ended December 31, 2014
Cash flows from operating activities:
Net income $ 109,000
Add (deduct) items not affecting cash:
Depreciation expense 45,000
Decrease in accounts receivable 23,000
Increase in inventory (7,000)
Increase in short-term debt 5,000
Increase in notes payable 12,000
Decrease in accounts payable (6,000)
Net cash provided by operating activities $181,000

Cash flows from investing activities:
Purchase of equipment $(50,000)
Purchase of buildings (48,000)
Net cash used by investing activities (98,000)

Cash flows from financing activities:
Cash used for retirement of long-term debt $(25,000)
Proceeds from issuance of common stock 10,000
Payment of cash dividends on common stock (3,000)
Net cash used by financing activities (18,000)
Net increase ( decrease ) in cash for the year $65,000
REQUIRED:
(a.) Complete the December 31, 2014 and 2013 balance sheets.
(b.) Prepare a Statement of Changes in Retained Earnings for the year ended December 31, 2014.
BERRY PROBLEMS WEEK 1 BERRY PROBLEM 1 Listed below are a number of financial statement captions. Indicate ON THE TEMPLATE in the spaces to the right of each caption (1) the category of each item, and (2) the financial statement on which the item can usually be found. Financial Statement Captions Accounts receivable Cost of goods sold Retained earnings Cash Interest income Loss on sale of building Notes payable Additional paid in capital Equipment Long-term debt Rent expense REQUIRED: Use the following letter designations to indicate on the template (1) the category of each item, and (2) the financial statement on which the item can usually be found (1) Category (2) Financial Statement Asset A Balance sheet BS Liability L Income statement IS Stockholders' Equity SE Revenue R Expense E Gain G Loss LS BERRY PROBLEM 2 From the data given below, calculate the Retained Earnings balance of December 31, 2014. Increase in total liabilities during 2014 33,000 Retained earnings, December 31. 2013 $115,000
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Gain on the sale of buildings during 2014 14.000 Dividends declared and paid in 2014 16.000 Proceeds from sale of common stock in 2014 32.000 Net income for the year ended December 31, 2014 141.000 REQUIRED: Prepare the retained earning portion of a statement of changes in stockholders' equity for the year ended December 31, 2014. BERRY PROBLEM 3 Volunteer, Inc. is in the process of liquidating and going out of business. The firm has $30,910 in cash, inventory totaling $107,000, accounts receivable of $72,000, plant and equipment with a $192,000 book value, and total liabilities of $307,000. It is estimated that the inventory can be disposed of in a liquidation sale for 75% of its cost, all but 15% of the accounts receivable can be collected, and plant and equipment can be sold for $210,000. REQUIRED: (a.) Calculate the amount of cash that would be available to the stockholders if the accounts receivable are collected, the other assets are sold as described, and the liabilities are paid in full. (b.) Describe how the difference between book value and liquidation value would be treated on the final income statement for Volunteer, Inc. with respect to the following assets: inventory, accounts receivable, and plant and equipment. What income statement accounts would be affected when these assets are sold or collected as described above? BERRY PROBLEM 4 Presented below is a statement of cash flows for Green, Inc., for the year ended December 31, 2014. Also shown is a partially completed comparative balance sheet as of December 31, 2013 and 2014. Green, Inc . Statement of Cash Flows For the year ended December 31, 2014 Cash flows from operating activities: Net income $ 109,000 Add (deduct) items not affecting cash: Depreciation expense 45,000 Decrease in accounts receivable 23,000 Increase in inventory (7,000) Increase in short-term debt 5,000 Increase in notes payable 12,000 Decrease in accounts payable (6,000) Net cash provided by operating activities $181,000 Cash flows from investing activities: Purchase of equipment $(50,000) Purchase of buildings (48,000) Net cash used by investing activities (98,000) Cash flows from financing activities: Cash used for retirement of long-term debt $(25,000)
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