College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 21, Problem 10SPB
To determine
Journalize the given transactions in the books of Company K.
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During the current year, the following credit entries were posted to the paid-in capital accounts of Crawford Shipyards:
Capital Stock . . . . . . . . . . . . . . . . . . . . . $12,000,000
Additional Paid-in Capital. . . . . . . . . . . . 43,500,000
Explain the type of cash transaction that probably caused these credit changes, and illustrate the presentation of this transaction in a statement of cash flows.
At the beginning of the current year, Callifax Corporation had dividends payable of $1,500,000. During the current year, the company declared cash dividends of $4,300,000, of which $900,000 appeared as a liability at year-end. Determine the amount of cash dividends paid during this year.
Prepare a statement of cash flows for the year 2012, following the proper format using following data:
Peter Senen Corporation provided the following account balances as of September 30, 2020:Cash P112,000 Accumulated depreciation P 36,000Accounts Receivable 64,000 Accounts payable 40,000Finished Goods 48,000 Income tax payable 9,000Work in process 36,000 Share Capital 500,000Raw materials 52,000 Retained Earnings 207,000Property and Equipment 480,000The following transactions occurred during October:1. Materials purchased on account, P150,0002. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000.3. Payroll for the month of October 2020 consisted of the following (also paid during the month):Direct labor P62,000 Administrative salaries P16,000Indirect Labor 20,000Sales salaries 30,000Payroll deductions were as follows:Withholding taxes P19,800 Phil health contributions P2,000SSS contributions 7,100 HDMF contributions 2,0004. Employer contributions for the month were accrued:Factory Selling AdministrativeSSS contributions P5,700 P2,000 P1,100Philhealth…
Directions. Read and analyse the given data. Answer the questions below on a separate
sheet of paper.
The January 31. 202x Statement of Financial Position of Shelpat Corporation follows:
Cash
8,000
Accounts receivable (net of allowance for uncollectible
Accounts of P2,000)
38,000
16,000
Inventory
Property, plant and equipment (net of allowance for
Accumulated depreciation of P60,000)
40 000
P. 102,000
Total Assets
Additional information:
• Sales are budgeted as follows:
February
P110,000
120 000
March
• Collections are expected to be 60% in the month of sale. 38% the next
month and 2 % uncollectible.
• The gross margin is 25% of sales. Purchases each month are 75% of the
next month's projected sales. The purchases are paid in full the following
month.
• Other expenses for each month, paid in cash, are expected to be P16,500.
Depreciation each month is P5,000.
1. What are the budgeted cash collections for February 202x?
P101,800
P104,000
P63,800
P66,000
a.
с.
b.
d.
2. What is the…
Chapter 21 Solutions
College Accounting, Chapters 1-27
Ch. 21 - Income taxes are a unique expense of the corporate...Ch. 21 - Prob. 2TFCh. 21 - Prob. 3TFCh. 21 - Prob. 4TFCh. 21 - Prob. 5TFCh. 21 - Prob. 1MCCh. 21 - Prob. 2MCCh. 21 - Prob. 3MCCh. 21 - Prob. 4MCCh. 21 - Prob. 5MC
Ch. 21 - Prob. 1CECh. 21 - Prob. 2CECh. 21 - Teway Company declared and paid dividends in the...Ch. 21 - Prob. 4CECh. 21 - Prob. 5CECh. 21 - Prob. 1RQCh. 21 - Prob. 2RQCh. 21 - Prob. 3RQCh. 21 - Prob. 4RQCh. 21 - Prob. 5RQCh. 21 - Prob. 6RQCh. 21 - Prob. 7RQCh. 21 - Prob. 8RQCh. 21 - Prob. 9RQCh. 21 - Prob. 10RQCh. 21 - Prob. 11RQCh. 21 - CORPORATE INCOME TAX Stanton Company estimates...Ch. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - Prob. 3SEACh. 21 - STOCK DIVIDENDS Kaufman Company currently has...Ch. 21 - STOCK SPLIT Goldstein Company has 100,000 shares...Ch. 21 - Prob. 6SEACh. 21 - STATEMENT OF RETAINED EARNINGS McGregor Company...Ch. 21 - Prob. 8SPACh. 21 - Prob. 9SPACh. 21 - Prob. 10SPACh. 21 - Prob. 11SPACh. 21 - Prob. 1SEBCh. 21 - CLOSING INCOME SUMMARY AND DIVIDENDS TO RETAINED...Ch. 21 - COMMON AND PREFERRED CASH DIVIDENDS Ramirez...Ch. 21 - STOCK DIVIDENDS Martinez Company currently has...Ch. 21 - Prob. 5SEBCh. 21 - Prob. 6SEBCh. 21 - Prob. 7SEBCh. 21 - Prob. 8SPBCh. 21 - CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT...Ch. 21 - Prob. 10SPBCh. 21 - Prob. 11SPBCh. 21 - Prob. 1MYWCh. 21 - Prob. 1ECCh. 21 - MASTRY PROBLEM On January 1, 20--, Dover Companys...Ch. 21 - CHALLENGE PROBLEM This problem challenges you to...
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- Statement of Cash Flows Colorado Corporation was organized at the beginning of the year, with the investment of $250,000 in cash by its stockholders. The company immediately purchased an office building for $300,000, paying $210,000 in cash and signing a three-year promissory note for the balance. Colorado signed a five-year, $60,000 promissory note at a local bank during the year and received cash in the same amount. During its first year, Colorado collected $93,970 from its customers. It paid $65,600 for inventory, $20,400 in salaries and wages, and another $3,100 in taxes. Colorado paid $5,600 in cash dividends. Required Prepare a statement of cash flows for the year. What does this statement tell you that an income statement does not?arrow_forwardDuring the current year, the following credit entries wereposted to the paid-in capital accounts of Crawford Shipyards:Capital Stock . . . . . . . . . . . . . . . . . . . . . $12,000,000Additional Paid-in Capital. . . . . . . . . . . . 43,500,000Explain the type of cash transaction that probably causedthese credit changes, and illustrate the presentation of thistransaction in a statement of cash flows.arrow_forwardAssume a company had net income of $60,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: $ 41,000 $ 57,000 $ 46,000 $ 53,000 Accounts receivable Inventory Current liabilities: $ 42,000 $ 14,000 $ 49,000 $ 14,000 Accounts payable Income taxes payable The company sold a piece of equipment for cash proceeds of $25,000. The original cost of the asset was $85,000 and its accumulated depreciation at the time of sale was $65,000. The company's accumulated depreciation account has beginning and ending balances of $320,000 and $280,000, respectively. Based solely on the information provided, the net cash provided by operating activities would be:arrow_forward
- Assume a company had net income of $62,000. It provided the following excerpts from its balance sheet: This Year Last Year Current assets: Accounts receivable $ 41,000 $ 46,000 Inventory $ 57,000 $ 53,000 Current liabilities: Accounts payable $ 42,000 $ 49,000 Income taxes payable $ 14,000 $ 14,000 The company sold a piece of equipment for cash proceeds of $25,000. The original cost of the asset was $85,000 and its accumulated depreciation at the time of sale was $65,000. The company’s accumulated depreciation account has beginning and ending balances of $320,000 and $280,000, respectively. Based solely on the information provided, the net cash provided by operating activities would be: Multiple Choice $71,000. $73,000. $83,000. $76,000.arrow_forwardFinancial statement data for years ending December 31 for Newton Company follow: Line Item Description 20Y9 20Y8 Cash (end of year) $26,270 $23,260 Short-term investments (end of year) 8,290 9,500 Operating expenses 60,070 62,700 Depreciation expense 13,350 11,600 Determine the days’ cash on hand for 20Y8 and 20Y9. Assume 365 days in a year. Year Days’ Cash on Hand 20Y8: fill in the blank 1 of 2 days 20Y9: fill in the blank 2 of 2 daysarrow_forwardPeter Senen Corporation provided the following account balances as of September 30, 2020: Cash P112,000 Accumulated depreciation P 36,000 Accounts Receivable 64,000 Accounts payable 40,000 Finished Goods 48,000 Income tax payable 9,000 Work in process 36,000 Share Capital 500,000 Raw materials 52,000 Retained Earnings 207,000 Property and Equipment 480,000 The following transactions occurred during October: 1. Materials purchased on account, P150,000 2. Materials issued to production: direct materials- P90,000, Indirect materials- P10,000. 3. Payroll for the month of October 2020 consisted of the following (also paid during the month): Direct labor P62,000…arrow_forward
- Blue Elk Manufacturing Balance Sheet For the Year Ended on December 31 Assets Current Assets: Cash and equivalents Accounts receivable Liabilities Current Liabilities: $150,000 Accounts payable $250,000 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity Total Assets $3,000,000 Total Liabilities and Equity $1,500,000 $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Blue Elk Manufacturing generated $500,000 net income on sales of $14,500,000. The firm expects sales to increase by 17% this coming year and also expects to maintain its long-run dividend payout ratio of 30%. Suppose Blue…arrow_forwardFor the just completed year, Hanna Company had net income of $66,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents $ 60,000 $ 76,000 Accounts receivable $ 166,000 $ 186,000 Inventory $ 433,000 $ 352,000 Prepaid expenses $ 12,500 $ 14,000 Current liabilities: Accounts payable $ 364,000 $ 386,000 Accrued liabilities $ 8,500 $ 11,500 Income taxes payable $ 34,000 $ 28,000 The Accumulated Depreciation account had total credits of $52,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)arrow_forwardFor the year just completed, Hanna Company had net income of $63,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Year Beginning of Year Current assets: Cash and cash equivalents $ 64,000 $ 77,000 Accounts receivable $ 154,000 $ 184,000 Inventory $ 433,000 $ 346,000 Prepaid expenses $ 12,000 $ 14,000 Current liabilities: Accounts payable $ 354,000 $ 388,000 Accrued liabilities $ 9,000 $ 11,500 Income taxes payable $ 35,000 $ 26,000 The Accumulated Depreciation account had total credits of $54,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash outflows as negative amounts.) Hanna Company Statement of Cash Flows—Indirect Method (partial)…arrow_forward
- A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under a.financing activities. b.operating activities. c.noncash investing and financing activities. d.investing activities. On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 × 8% × 1/2), receiving cash of $884,177. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210…arrow_forwardGreen Caterpillar Garden Supplies Inc. Balance Sheet For the Year Ended on December 31 Assets Liabilities Current Assets: Current Liabilities: Cash and equivalents $150,000 Accounts payable $250,000 Accounts receivable 400,000 Accrued liabilities 150,000 Inventories 350,000 Notes payable 100,000 Total Current Assets $900,000 Total Current Liabilities $500,000 Net Fixed Assets: Long-Term Bonds 1,000,000 Net plant and equipment(cost minus depreciation) $2,100,000 Total Debt $1,500,000 Common Equity Common stock 800,000 Retained earnings 700,000 Total Common Equity $1,500,000 Total Assets $3,000,000 Total Liabilities and Equity $3,000,000 The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Green Caterpillar Garden Supplies Inc. generated $300,000 net income on sales of $12,500,000. The firm expects sales to increase by 18% this…arrow_forwardExon Oil Company Balance Sheet For the year ended December 31, 201A $ million Assets Current Assets Inventories 8,745 Trade and associated company 18,865 Short term investment 125 Current tax receivable 78 Cash at bank 4,457 Total 32,270 Non-current Assets 35,008 Property, plant and equipment Intangible assets 1,350 Goodwill 2,994 Investments in associates Financial investments 5,892 2,139 Total 47,383 Total assets 79,653 Liabilities Current Liabilities 29,855 Account payables Finance debt Tax payable 2,650 3,570 Unearned revenues 768 Total current liabilities 36,843 Non-Current Liabilities 3,458 Finance debt Bond payable Wage payable 4,071 2,087 Interest payable 3,302 Total long-term liabilities 12,918 Total liabilities 49,761 Equity Common stock 26,871 Retained Earning 3,021 Total equity 29,892 Total liabilities and equity 79,653 1. Compute for the current ratio and describe the enterprise's capability to pay short-term liabilities with current assets. 2. Compute for debt ratio to…arrow_forward
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