Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Visit www.sec.gov/edgar and search for the BJ's Wholesale annual report (10-K) for the year ended February 1, 2020, using EDGAR
(Electronic Data Gathering, Analysis, and Retrieval system). Search or scroll within the annual report to find the balance sheet, labeled
"Consolidated Balance Sheets."
Required:
1. Find the amounts reported for accumulated depreciation for the period ended February 1, 2020, and February 2, 2019. Assuming
no depreciable assets were sold during the year, determine the adjustment for BJ's depreciation for the year and compute the
adjusted balances of the related accounts.
2. For simplicity, assume the entire amount reported for "Prepaid expenses and other current assets" represents the balance of the
Supplies account. If the year-end balance of the Supplies account prior to any adjustment is $200,000 (in thousands), determine
the adjustment that was made to Supplies (and Supplies Expense) at the end of the current year and compute the adjusted
balances of the…
1. Compute for the carrying value of the intangible assets at December 31, 2019.
2. How much is the Net Income (Loss) of the company for the year ended December 31, 2019?
Using the Exhibit below, assume that the depreciation expense on the Income Statement for the year was $38,000. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of depreciation expense on the Cash flow from operating activities section?
EXHIBIT
Increase
(Decrease)
Net Income (loss) $XXX
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation of fixed assets XXX
Losses on disposal of assets XXX
Gains on disposal of assets (XXX)
Changes in current operating assets and liabilities:…
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- On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and amortization expense to the nearest whole year. During 2020, Vail engaged in the following transactions: Required: 1. Check the accuracy of the accumulated depreciation balances at December 31, 2019. Round to the nearest whole dollar in all requirements. 2. Prepare journal entries to record the preceding events in 2020, as well as the year-end recording of depreciation expense. 3. Prepare an Accumulated Depreciation account for each category of assets, enter the beginning balance, post the journal entries from Requirement 2, and compute the ending balance.arrow_forwardUse the following information from Dubuque Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.arrow_forwardBased on the attached image. what is the correct amount of total separately disclosable items added to (deducted from) profit before tax as part of the adjustments in the cash generated from operations section according to indirect method in the statement of cash flows of Moletji Limited for the year ended 31 December 2020?arrow_forward
- Compute for the carrying value of intangible and other assets recognized in the balance sheet as of December 31, 2019. A) 2,622,250 B) 2,928,917 C) 3,122,000 D) 2,802,000arrow_forwardThe financial information below presents operating revenue and expenses for 2020 as well as the starting and ending balances for relevant asset and liability accounts that changed during the year: Prepare the Operating section of the Cash Flow Statement using the direct approach. Sales revenue $909,272 Depreciation expense $3,206 Cost of goods sold 445,563 Selling, general and administrative expenses 91,316 Interest expense 12,402 Income tax expense 143,126 Accounts receivable 12/31/19 65,305 Accounts receivable 12/31/20 67,810 Accounts payable 12/31/19 16,540 Accounts payable 12/31/20 17,261 Prepaid expenses 12/31/19 4,107 Prepaid expenses 12/31/20 3,875 Inventory 12/31/19 7,852 Inventory 12/31/20 6,491arrow_forwardInserting into the Answer Box, prepare a statement of cash flows for the year ended December 31, 2019, using the Indirect method for Presidio, Co. Extracts from the 2019 financial records of the Presidio, Co.: Additional information: During 2019, the company sold a piece of plant equipment for cash that had originally cost $20,000. The accumulated depreciation associated with the equipment at the time of sale was $10,000. There was no gain or loss on the sale. A Long-Term Stock Investment with an original cost of $11,000 was sold. All dividends were paid in cash during the year. Copy and Paste the Statement template below INTO your Answer Box in order to complete this question in the correct format. Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Net increase/<decrease> in cash & cash equivalents Beginning cash balance, January 1, 2019…arrow_forward
- Information for Blake Corporation’s property, plant, and equipment for 2019 is: 1. For each asset classification, prepare schedules showing depreciation and amortization expense, and accumulated depreciation and amortization that would appear on Blake’s income statement for the year ended December 31, 2019, and on the balance sheet at December 31, 2019, respectively 2. Prepare a schedule showing the gain or loss from disposal of assets that would appear in Blake’s income statement for the year ended December 31, 2019. 3. Prepare the property, plant, and equipment section of Blake’s December 31, 2019, balance sheet.arrow_forwardUse the information provided below to prepare the Cash Flow Statement of Alto Limited for the year ended 31 December 2022. INFORMATION The following amounts were obtained from the Statement of Comprehensive Income for the year ended 31 December 2022 and Statement of Financial Position of Alto Limited as at 31 December 2022 and 31 December 2021: Sales Cost of sales Depreciation Operating profit Interest expense Company tax for the year Property, plant and equipment (carrying value) Long-term investments Inventories Accounts receivable Prepaid expenses Cash and cash equivalents Ordinary share capital (All shares issued at R10 each) Retained earnings Non-current liabilities Accounts payable Accrued expenses Dividends payable Company tax payable 31 Dec 2022 R 11 000 000 6 500 000 750 000 1 650 000 450 000 400 000 6 250 000 350 000 2 150 000 1 700 000 200 000 500 000 3 100 000 3 000 000 3 600 000 1 100 000 100 000 200 000 50 000 31 Dec 2021 R Note: ■ Dividends paid and recommended during…arrow_forwardIncome Statement Information (2021): 1. Net income for the year ending December 31, 2021 is $43,500. 2. Depreciation expense is $6,000. 3. There is a loss of $3,000 resulted from the sale of long-term investment. Additional information (2021): 1. All sales and purchases of inventory are on account (or credit). 2. Received cash for the sale of long-term investments that had a cost of $27,000, yielding a $3,000 loss. 3. Cash dividends paid is $15,000. 4. The company purchased new machines and tools for $7,500 cash. Required: Prepare the FIRST (Operating) and the SECOND (Investing) sections of the statement of cash flows for the year ended December 31, 2021.arrow_forward
- The starting and ending balances for relevant asset and liability accounts that changed during the year are presented below. Net income was $650,000 for the year and dividends paid were $150,000. Depreciation expense for 2020 was $7,000, and all other changes in accumulated depreciation and property, plant, and equipment related to the sale of property at book value. No other non-cash transactions occurred. Use this information to calculate the net cash inflows (outflows) from investing and financing activities in 2020. Beginning Ending Short-term notes receivable $40,000 $45,000 Bonds receivable 50,000 150,000 Property, plant, and equipment 850,000 825,000 Accumulated depreciation 10,000 16,000 Short-term notes payable 237,000 187,000 Bonds payable 350,000 500,000 Contributed capital 400,000 480,000arrow_forwardFrom the following income statement and the balance sheets, prepare a funds-flow statement: The Income Statement for the year ended 31 December 2018 shows: Amount(2) Amount(2) 15,000.00 Profit before depreciation Less: Depreciation Taxation 5,000.00 5,000.00 Dividend Transfer to reserves Balance of profit and Loss(P/L)A/e The Balance Sheet as on 31 December, 2017 and 31 December, 2018 is as follows: | Liabilitios 500.00 3,500.00 14,000.00 1,000.00 As on As on Assets As on As on 31/12/2017 31/12/2018 31/12/2017 31/12/2018 Share capital Reserves Fixed Assets 40,000.00 42,000.00 15,000.00 18,5000.00 Current Assets: P&L A/e 1,000.00 Stodk 10,000.00 15,000.00 Secured Loans 9,000.00 14,000.00 Debtors 15,000.00 21,000.00 Current Liabilities and 18,500.00 19,000.00 provisions Total Cash 2,500.00 4,000.00 67,500.00 82,500.00 67.500.00 82,500.00arrow_forwardbased on the images, what is the correct amount that must be disclosed as increase (decrease) in trade receivables in the cash generated from operations section of the statement of cash flows of Moletji Limited for the year ended 31 December 2020?arrow_forward
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