ACCT 215 Chapter 24 Problems (2015)

| June 4, 2016

Question
Problem 24.01A
COLE, INC.
Statement of Cash Flows
Year Ended December 31, 2013
Cash Flows from Operating Activities
Net Income for year
Adjustments:
Depreciation
Increase in accounts receivable
Increase in merchandise inventory
Decrease in accounts payable
Total adjustments
Net cash provided by operating activities
Cash Flows from Investing Activities
Purchase of equipment
Net cash used in investing activities
Cash Flows from financing Activities
Proceeds from issuance of bonds payable
Proceeds from issuance of common stock
Net cash provided from financing activities
Net increase in cash
Cash, January 1, 2013
Cash, December 31, 2013

Given Data P24.01A
COLE, INC.
Comparative Balance Sheet
December 31, 2013 and 2012
Assets
Cash
Accounts Receivable (net)
Merchandise Inventory
Property, Plant, and Equipment
Less: Accumulated Depreciation
Total Assets

2013
77,900
129,600
45,600
240,000
(37,000)
456,100

2012
39,500
79,600
43,000
190,000
(19,000)
333,100

Liabilities and Stockholders’ Equity
Liabilities
Accounts Payable
Bonds Payable
Total Liabilities

45,000
150,000
195,000

62,000
100,000
162,000

Stockholders’ Equity
Common Stock ($1 par, 50,000 shares authorized)
5,000 shares issued in 2012 and 6,000 shares
issued in 2013)
Retained Earnings
Total Stockholders’ Equity
Total Liabilities and Stockholders’ Equity

60,000
201,100
261,100
456,100

50,000
121,100
171,100
333,100

Additional Information for 2013:
a. Net Income
b. Depreciation recorded for year
c. Cash received for Bonds Payable issued at par
d. Cash received from issuance of Common Stock
Par value of Common Stock issued
Number of additional shares issued
e. Paid cash for equipment

$80,000
$18,000
$50,000
$10,000
$10
1,000
$50,000

Student Name:
Class:
Problem 24.03A
JACKSON CORPORATION
Statement of Cash Flows
Year Ended December 31, 2013
Cash Flows from Operating Activities
Net Income
Adjustments:
Depreciation
Increase in accounts receivable
Decrease in inventories
Decrease in prepaid advertising
Decrease in accounts payable
Increase in salaries payable
Decrease in unearned revenues
Increase in income taxes payable
Total adjustments
Net cash provided by operating activities
Cash Flows from Investing Activities
Purchase of property, plant, and equipment
Net cash used in investing activities
Cash Flows from financing Activities
Proceeds from issuance of common stock
Payment of note payable due in 2015
Payment of dividend on common stock
Net cash used in financing activities
Net increase in cash
Cash, January 1, 2013
Cash, December 31, 2013

Given Data P24.03A
JACKSON CORPORATION
Comparative Income Statement
Year Ended December 31, 2013
Revenues
Costs and Expenses
Cost of Goods Sold
Salaries Expense
Depreciation Expense
Advertising Expense
Utilities Expense
Total Costs and Expenses
Net Income Before Income Taxes
Income Taxes Expense
Net Income After Income Taxes

675,500
429,000
125,000
15,000
14,900
18,000
601,900
73,600
18,400
55,200

JACKSON CORPORATION
Comparative Balance Sheet
December 31, 2013 and 2012
Assets
Cash
Accounts Receivable (Net)
Merchandise Inventory
Prepaid Advertising
Property, Plant, and Equipment
Less: Accumulated Depreciation
Total Assets
Liabilities and Stockholders’ Equity
Liabilities
Accounts Payable
Salaries Payable
Unearned Revenues
Income Taxes Payable
Note Payable – 2015
Total Liabilities
Stockholders’ Equity
Common Stock ($2 par)
Retained Earnings
Total Stockholders’ Equity
Total Liabilities and Stockholders’ Equity
Additional Information:
a. No Property, Plant, and Equipment disposed of during year
b. Paid cash for additions to Property, Plant, and Equipment
c. Cash paid for dividends on Common Stock
d. Issued Common Stock at par value for cash
e. Paid cash to retire long-term note payable

2013
81,000
55,650
49,000
8,000
120,000
(25,000)
288,650

2012
70,000
52,000
54,000
10,000
100,000
(10,000)
276,000

50,450
4,500
4,000
6,000
64,950

79,000
3,500
5,000
5,000
30,000
122,500

75,000
148,700
223,700
288,650

50,000
103,500
153,500
276,000

$10,000

Student Name:
Class:
Problem 24.04A
SHORT COMPANY
Statement of Cash Flows
Year Ended December 31, 2013
Cash Flows from Operating Activities
Net Income for Year
Adjustments:
Depreciation
Loss on sale of equipment
Increase in accounts receivable
Decrease in merchandise inventory
Decrease in prepaid rent
Decrease in accounts payable
Increase in income tax payable
Total adjustments
Net cash provided by operating activities
Cash Flows from Investing Activities
Purchase of land
Proceeds from sale of equipment
Proceeds from sale of bond investment
Purchase of equipment
Net cash used in investing activities
Cash Flows from Financing Activities
Proceeds from issuance of bonds payable
Payment of dividend on common stock
Net cash used in financing activities
Net increase in cash
Cash, January 1, 2013
Cash, December 31, 2013

Given Data P24.04A
SHORT COMPANY
Comparative Balance Sheet
December 31, 2013 and 2012
Assets
Cash
Accounts Receivable (Net)
Merchandise Inventory
Prepaid Rent
Land
Property, Plant, and Equipment
Less: Accumulated Depreciation-PPE
Investment in TVA Bonds
Total Assets

2013
116,875
86,000
82,650
5,500
85,000
189,000
(20,900)
30,000
574,125

2012
53,250
67,250
74,000
4,500
25,000
219,000
(21,900)
50,000
471,100

Liabilities and Stockholders’ Equity
Liabilities
Accounts Payable
Income Taxes Payable
Bonds Payable
Total Liabilities

66,300
9,250
140,000
215,550

86,600
9,500
100,000
196,100

Stockholders’ Equity
Common Stock
Retained Earnings
Total Stockholders’ Equity
Total Liabilities and Stockholders’ Equity

105,000
253,575
358,575
574,125

75,000
200,000
275,000
471,100

SHORT COMPANY
Income Statement
Year Ended December 31, 2013
Revenues
Costs and Expenses
Cost of Goods Sold
Depreciation Expense
Selling and Administrative Expenses
Interest Expense
Loss on Sale of Equipment
Income Taxes Expense
Total Costs and Expenses
Net Income After Income Taxes
Additional Information:
a. Cost of land acquired
Paid half in cash
Common Stock issued for balance
b. Cash received for sale of equipment
Original cost of equipment sold
Depreciation taken on equipment sold
Depreciation expense for 2013
Additional equipment was purchased for cash
c. Issued bonds payable at par value for cash.
d. Bond investments sold at no gain or loss
e. Dividends paid on Common Stock

809,000
475,750
9,000
197,650
18,500
10,000
24,525
735,425
73,575

$60,000
$20,000
$40,000
$10,000
$9,000
$20,000
$20,000

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