Kelly Creel October 7, 2011 AC315 IA Chapter 5 Homework 5-1

a. b. c. d. e. f. g. h. i. j. k. l. m. n.
5-2 h d f f c a f g a a b f a h c b a a g f

Investment in Preferred Stock Treasury Stock Common Stock Cash Dividends Payable Accumulated Depreciation Warehouse in Process of Construction and equipment or current asset Petty Cash Accrued Interest on Notes Payable Deficit Trading Securities Income Taxes Payable Unearned Subscription Revenue Work in Process Accrued Vacation Pay

Current Asset Current Asset Stockholders equity Current Liability Property, plant and equipment could be classified as Property, plant Current Asset Current Liability Retained earnings Current Asset Current Liability Current Liability Current Liability Current Liability

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5-3 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 5-6 Balance Sheet Current Assets Accounts Rcv Less allowance For doubtful accounts Inventories Total Current Assets Long Term Investments Bond sinking fund Property Plant Equipment Equipment Less accum depr Intangible assets Patents Total Assets 112,000 28,000 60,000 46,700 3,500 43,200 65,300 168,500 a b f a f h i d a f a f a c f x f c

12,000

84,000 21,000 285,500

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Current Liabilities Notes and accounts payable Taxes payable Total current liabilities Long Term Liabilities Total liabilities Stockholders equity Total Liabilities and stockholders equity 5-8 1. 2. 3.

52,000 3,000 58,000 75,000 133,000 155,500 285,500

Dividend payable of 1,900,000 will be reported as a current liability 1,000,000-50,000 * 2.00 = 1,900,000

Advances of 17,000,000 will be reported as current liability 12,000,000+30,000,000-25,000,000=17,000,000

5-17 a. Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities: Loss on sale of equipment Depreciation expense Patent amortization Increase in current liabilities Increase in current Net cash provided by operating activities Cash flows from investing activities Sale of equipment Addition to building Investment in stock 55,000

2,000 13,000 2,500 13,000 (29,000)

1,500 56,500

10,000 (27,000) (16,000)

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Net cash used by investing activities

(33,000)

Cash flows from financing activities Issuance of bonds Payment of dividends Purchase of treasury stock Net cash provided by financing activities Net increase in cash

50,000 (30,000) (11,000) 9,000 32,500

b. Assets Current assets Long-term investments Property, plant, and equipment Land Building Less: Accum. Depreciation Equipment Less: Accum. Depreciation Total property, plant, and equipment Intangible assetspatents Total assets Liabilities and Stockholders Equity Current liabilities Long-term liabilities Bonds payable Total liabilities Stockholders equity Common stock Retained earnings Total paid-in capital and retained earnings Less: Cost of treasury stock Total stockholders equity Total liabilities and stockholders equity 163,000 150,000 313,000 180,000 69,000 249,000 (11,000) 238,000 551,000 296,500 16,000 30,000 147,000 (34,000) 70,000 (12,000) 113,000 201,000 37,500 551,000

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Problem 5-1 Current assets Cash on hand (including petty cash) Cash in bank Trading securities Accounts receivable Less: Allowance for doubtful accounts Interest receivable Advances to employees Inventory (ending) Prepaid rent Total current assets Long-term investments Bond sinking fund Cash surrender value of life insurance Land for future plant site Total long-term investments Property, plant, and equipment Land Buildings Less: Accum. Depreciationbuildings Equipment Less: Accum. Depreciationequipment Total property, plant, and equipment Intangible assets Copyright Patent Total intangible assets Total assets Liabilities and Stockholders Equity Current liabilities Notes payable Payroll taxes payable Accrued wages Dividends payable Unearned subscriptions revenue Total current liabilities Long-term debt Bonds payable

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Add: Premium on bonds payable Pension obligations Total long-term liabilities Total liabilities Stockholders equity Capital stock Preferred stock Common stock Additional paid-in capital Premium on preferred stock Total paid-in capital Retained earnings Total paid-in capital and retained earnings Less: Treasury stock Total stockholders equity Total liabilities and stockholders equity 5-3 Current assets Cash Accounts receivable Less: Allowance for doubtful accounts Inventoryat LIFO cost Prepaid insurance Total current assets Long-term investments Property, plant, and equipment Cost of uncompleted plant facilities Land Building in process of construction Equipment Less: Accum. Depreciation Intangible assets Patentsat cost less amortization Total assets Current liabilities Notes payable Accounts payable Accrued expenses Total current liabilities 94,000 148,000 49,200 291,200 36,000 1,354,200 85,000 124,000 400,000 140,000 41,000 163,500 8,700 154,800 308,500 5,900 510,200 339000

209,000 260,000 469,000

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Long-term liabilities 8% bonds payable Less: Unamortized discount on bonds payable Total liabilities Stockholders equity Common stock Premium on common stock Retained earnings Total liabilities and stockholders equity 500,000 45,000

400,000 20,000

380,000 671,200

545,000 138,000

683,000 1,354,200

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