12th Edition

ISBN: 9780134486444

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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Textbook Question

Chapter 16, Problem 6QC

The Plant Assets account and Accumulated Depreciation—Plant Assets account of Star Media show the following:

Learning Objective 2

Chapter 16, Problem 6QC, The Plant Assets account and Accumulated Depreciation—Plant Assets account of Star Media show the

Star Media sold plant assets at an $11.000 loss. Where on the statement of cash flows should Star Media report the sale of plant assets? How much should the business report for the sale?

Financing cash flows—cash receipt of $42,000
Investing cash flows—cash receipt of $53,000
Investing cash flows—cash receipt of $31,000
Investing cash flows—cash receipt of $42,000

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Chapter 16, Problem 5QC

Chapter 16, Problem 7QC

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(Learning Objective 8: Report cash flows for plant assets) Assume AlfonsoCorporation completed the following transactions:a. Sold a store building for $670,000. The building had cost Alfonso $1,600,000, and at thetime of the sale, its accumulated depreciation totaled $930,000.b. Lost a store building in a fire. The building cost $300,000 and had accumulateddepreciation of $220,000. The insurance proceeds received by Alfonso totaled $200,000.c. Renovated a store at a cost of $140,000 (cash).d. Purchased store fixtures for $110,000 (cash). The fixtures are expected to remain inservice for ten years and then be sold for $110,000. Alfonso uses the straight-linedepreciation method.For each transaction, show what Alfonso would report for investing activities on its statement ofcash flows. Show negative amounts in parentheses.

rect method. Carlson Software Corp. has assembled the following data for the years ending December 31, P12-60A (Learning Objectives 2, 3: Prepare the statement of cash flows-indirect method) 2016 and 2015 3. Prepal cash flows from opl 4 5 6 7 8 $ 10 11 12 13 Current Accounts: Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Income tax payable Accrued liabilities Transaction Data for 2016: Acquisition of land by issuing long-term note payable..... Stock dividends Collection of loan. Depreciation expense. Purchase of building with cash. Retirement of honds payable by issuing common stock.... Purchase of long-term investment with cash........ $202,000 34,900 12,400 19,000 159,000 80,000 45,300 31, 2016 Format December 31, 2016 $ 105,800 18,000 8,600 2,900 equipment Amortization expense $ 9,300 28,600 15,000 Purchase of treasury stock. Loss on sale of equipment...... Payment of cash dividends Issuance of…

(Learning Objective 2: Issue stock to finance the purchase of assets) This short exercise demonstrates the similarity and the difference between two ways to acquire plant assets.Case A – Issue stock and buy the assets in separate transactions:Wolford Company issued 12,000 shares of its $35 par common stock for cash of $950,000. In aseparate transaction, Wolford used the cash to purchase a building for $560,000 and equipment for$390,000. Journalize the two transactions.Case B – Issue stock to acquire the assets in a single transaction:Wolford Company issued 12,000 shares of its $35 par common stock to acquire a building witha market value of $560,000 and equipment with a market value of $390,000. Journalize thetransaction.Compare the balances in all the accounts after making both sets of entries. Are the accountbalances the same or different?

Chapter 16 Solutions

Horngren's Accounting (12th Edition)

Ch. 16 - Prob. 1QC Ch. 16 - Prob. 2QC Ch. 16 - Prob. 3QC Ch. 16 - Prob. 4QC Ch. 16 - Prob. 5QC Ch. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QC Ch. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC

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