- •94. Lite Travel Company's accounting records include the following information:
- •95. Freeman Company's accounting records include the following information:
- •99. Hogan Company had the following account balances for 2006:
- •100. Hanson Company had the following account balances for 2006:
- •Problems
- •Required:
- •113. The accounting records of Westlake Industries provided the data below.
- •Required:
- •114. Prepare the spreadsheet entries necessary to determine the amount of cash received from customers for each of the four independent situations below.
- •115. Prepare the spreadsheet entries necessary to determine the amount of cash paid to suppliers for each of the four independent situations below.
- •116. Following are the income statement and some additional information for Carolina Consulting Company.
- •Required:
- •117. Following are the income statement and some additional information for Parson Corporation for 2006.
- •Required:
- •118. Partial balance sheets and additional information are listed below for Sowell Company.
- •Required:
- •119. Partial balance sheets and additional information are listed below for Rickey Company.
- •Required:
- •120. Partial balance sheets and additional information are listed below for Monaco Company.
- •Required:
- •121. Partial balance sheets and additional information are listed below for Ensign Company.
- •Required:
- •122. Partial balance sheets and additional information are listed below for Funk Company.
- •Required:
- •123. Partial balance sheets and additional information are listed below for Julius Company.
- •Required:
- •124. Partial balance sheets for Yarborough Company and additional information are found below.
- •Required:
- •125. Partial balance sheets for abc Company and additional information are provided below.
- •Required:
- •126. The accounting records of Harrison Company provided the data below.
- •Required:
- •127. The accounting records of Unlucky Company provided the data below
- •Required:
- •128. The Murdock Corporation reported the following balance sheet data for 2006 and 2005.
- •Required:
- •129. The following are comparative balance sheets and on income statement for Wentworth Company.
- •In its 2005 Annual Report to Shareholders, Henchman & Co. Provided the following Statement of Cash Flows:
127. The accounting records of Unlucky Company provided the data below
-
Net loss
$40,000
Depreciation expense
12,000
Increase in salaries payable
11,000
Increase in accounts receivable
4,000
Decrease in inventory
4,800
Amortization of patent
700
Decrease in premium on bonds
500
Required:
Prepare a reconciliation of net income to net cash flows from operating activities.
Answer:
-
Net loss
$(40,000
)
Adjustments for noncash effects:
Depreciation expense
12,000
Increase in salaries payable
11,000
Increase in accounts receivable
(4,000
)
Decrease in inventory
4,800
Amortization expense
700
Reduction in premium on bonds
(500
)
Net cash flows from operating activities
$ (16,000
)
Learning Objective: 4 Level of Learning: 3
128. The Murdock Corporation reported the following balance sheet data for 2006 and 2005.
-
2006
2005
Cash
$ 77,375
$ (22,955
)
Available-for-sale securities
(not cash equivalents)
15,500
85,000
Accounts receivable
80,000
68,250
Inventory
165,000
145,000
Prepaid insurance
1,500
2,000
Land, buildings, and equipment
1,250,000
1,125,000
Accumulated depreciation
(610,000
)
(572,000
)
Total assets
$ 979,375
$ 830,295
Accounts payable
$ 76,340
$ 102,760
Salaries payable
20,000
24,500
Notes payable (current)
25,000
75,000
Bonds payable
200,000
0
Common stock
300,000
300,000
Retained earnings
358,035
328,035
Total liabilities and shareholders' equity
$ 979,375
$ 830,295
ог
Additional information for 2006:
-
Sold available-for-sale securities costing $69,500 for $74,000.
-
Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
-
Issued 6% bonds payable at par, $200,000.
-
Purchased new equipment for cash $145,000.
-
Paid cash dividends of $20,000.
-
Net income was $50,000.
-
Proceeds of the notes payable were used for operating purposes.