Expert answer:exam take home two questions selenica
Solved by verified expert:Slacked details, read attachment, complete two questions
accounting_take_home_questions.docx
Unformatted Attachment Preview
A. Selected financial statement information and additional data for Stanislaus Co. is presented below.
Prepare a statement of cash flows for the year ending December 31, 2016
December 31
2015
2016
Cash ……………………………………………………… $52,000
Accounts receivable (net) ………………………..
64,000
Inventory ………………………………………………. 178,000
Land………………………………………………………
78,800
Equipment…………………………………………….. 504,000
TOTAL ……………………………………….. $876,800
$85,000
144,200
206,600
21,000
789,600
$1,246,400
Accumulated depreciation ………………………. $94,000
Accounts payable ……………………………………
50,400
Notes payable – short-term………………………
67,200
Notes payable – long-term ………………………. 178,000
Common stock ………………………………………. 420,000
Retained earnings …………………………………..
67,200
TOTAL ……………………………………….. $876,800
$115,600
86,000
29,400
302,400
487,200
225,800
$1,246,400
Additional data for 2016:
1. Net income is shown on the income statement below.
2. Depreciation was $21,600.
3. Land was sold at its original cost.
4. Dividends were paid.
5. Equipment was purchased
6. A long-term note was issued.
7. Common stock was issued.
Income Statement
For the year ended December 31, 2014
Sales revenue……………..
$1,200,000
Cost of goods sold………
500,000
Gross profit
700,000
Selling and administrative expenses…..
360,000
Pre-tax operating income
340,000
Income taxes
119,800
Net income…………………………………………………$220,200
a. Prepare a balance sheet in proper form.
b. Prepare the statement of cash flow using the indirect method
Problem 2
On January 1, 2016, Domino Incorporated sells factory equipment to Jon Jon Associates in return for a
$900,000, 3 year, zero interest note maturing on December 31, 2018. The cost of the equipment is
$1,000,000 and the accumulated depreciation is $300,000 on the books of Domino Incorporated. The
normal borrowing rate for Jon Jon is 6%.
Required:
1. Prepare the journal entry to record the sale of the land on Domino’s books.
2. Prepare an amortization table using the effective interest method.
3. Prepare the journal entries to record the interest revenue in 2016, 2017 and 2018 for
Domino.
…
Purchase answer to see full
attachment
How it works
- Paste your instructions in the instructions box. You can also attach an instructions file
- Select the writer category, deadline, education level and review the instructions
- Make a payment for the order to be assignment to a writer
- Download the paper after the writer uploads it
Will the writer plagiarize my essay?
You will get a plagiarism-free paper and you can get an originality report upon request.
Is this service safe?
All the personal information is confidential and we have 100% safe payment methods. We also guarantee good grades