Horngren's Accounting (12th Edition)
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 E16.23E
E16-23 Computing the cash effect
Learning Objective 2
- Payment: $8,000 4. Dividends $47,000 Rouse Exercise Equipment, Inc. reported the following financial statements for 2018:
| ROUSE EXERCISE EQUIPMENT, INC. Income Statement Year Ended December 31, 2018 |
|
| Net Sales Revenue | $ 713,000 |
| Cost of Goods Sold | 342,000 |
| Gross Profit | 371,000 |
| Operating Expenses:Depreciation Expense$ 54,000Other Operating Expenses210,000 | |
| Total Operating Expenses | 264,000 |
| Net Income | $ 107,000 |
ROUSE EXERCISE EQUIPMENT. INC.Comparative Balance SheetDecember 31. 2018 and 2017
| 2018 | 2017 | |
| Assets | ||
| Current Assets: | ||
| Cash | $ 17,000 | $ 16,000 |
| 57,000 | 46,000 | |
| Merchandise Inventory | 79,000 | 90,000 |
| Long-term Assets: | ||
| Plants Assets | 260,500 | 216,400 |
| (38,500) | (32,400) | |
| Investments | 96,000 | 73,000 |
| Total Assets | $ 471,000 | $ 409,000 |
| Liabilities | ||
| Current Liabilities: | ||
| Accounts Payable | $ 72.000 | $ 71,000 |
| Salaries Payable | 3,000 | 5,000 |
| Long-term Liabilities: | ||
| Notes Payable | 61,000 | 69,000 |
| Total Liabilities | 136,000 | 145,000 |
| Common Stock, no par | 45,000 | 34,000 |
| 290,000 | 230,000 | |
| Total Stockholders' Equity | 335,000 | 264,000 |
| Total Liabilities and Stockholders’ Equity | $471,000 | $ 409,000 |
Requirements
- Compute the amount of Rouse Exercise's acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $47,900. No cash was received upon disposal.
- Compute new borrowing or payment of long-term notes payable, with Rouse Exercise having only one long-term notes payable transaction during the year.
- Compute the issuance of common stock with Rouse Exercise having only one common stock transaction during the year.
- Compute the payment of cash dividends.
Note: Exercise E16-23 must be completed before attempting Exercise E16-24.
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Chapter 16 Solutions
Horngren's Accounting (12th Edition)
Ch. 16 - Prob. 1QCCh. 16 - Prob. 2QCCh. 16 - Prob. 3QCCh. 16 - Prob. 4QCCh. 16 - Prob. 5QCCh. 16 - The Plant Assets account and Accumulated...Ch. 16 - Mountain Water Corp issued common stock of $28,000...Ch. 16 - Prob. 8QCCh. 16 - Maxwell Furniture Center had accounts receivable...Ch. 16 - Prob. 10BQC
Ch. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 11RQCh. 16 - Prob. 12RQCh. 16 - Prob. 13RQCh. 16 - Prob. 14RQCh. 16 - Prob. 15ARQCh. 16 - Prob. 16BRQCh. 16 - Prob. S16.1SECh. 16 - S16-2 Classifying items on the statement of cash...Ch. 16 - Prob. S16.3SECh. 16 - Prob. S16.4SECh. 16 - Prob. S16.5SECh. 16 - Prob. S16.6SECh. 16 - Prob. S16.7SECh. 16 - Prob. S16.8SECh. 16 - Prob. S16.9SECh. 16 - Prob. S16.10SECh. 16 - Preparing a statement of cash flows using the...Ch. 16 - Prob. S16A.12SECh. 16 - Prob. S16A.13SECh. 16 - Prob. S16A.14SECh. 16 - Prob. S16B.15SECh. 16 - Prob. E16.16ECh. 16 - Prob. E16.17ECh. 16 - Classifying items on the indirect statement of...Ch. 16 - Prob. E16.19ECh. 16 - Prob. E16.20ECh. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Prob. E16.22ECh. 16 - E16-23 Computing the cash effect Learning...Ch. 16 - Preparing the statement of cash flows—indirect...Ch. 16 - Identifying and reporting non-cash transactions...Ch. 16 - Prob. E16.26ECh. 16 - Prob. E16A.27ECh. 16 - Prob. E16A.28ECh. 16 - Computing cash flow items—direct method Learning...Ch. 16 - Prob. E16A.30ECh. 16 - Prob. E16B.31ECh. 16 - Prob. P16.32APGACh. 16 - Prob. P16.33APGACh. 16 - Prob. P16.34APGACh. 16 - Prob. P16.35APGACh. 16 - Preparing the statement of cash flows—direct...Ch. 16 - Prob. P16A.37APGACh. 16 - Prob. P16B.38APGACh. 16 - Prob. P16.39BPGBCh. 16 - Prob. P16.40BPGBCh. 16 - Prob. P16.41BPGBCh. 16 - Prob. P16.42BPGBCh. 16 - Prob. P16A.43BPGBCh. 16 - Prob. P16A.44BPGBCh. 16 - Prob. P16B.45BPGBCh. 16 - Prob. P16.46CTCh. 16 - Prob. P16.47CPCh. 16 - Prob. 16.1TIATCCh. 16 - Decision Case 16-1 Theater by Design and Show...Ch. 16 - Ethical Issue 16-1 Moss Exports is having a bad...Ch. 16 - Prob. 16.1FSC
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