Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Net changes in balance sheet accounts of Lenon, Inc. for the year 2008 are given below:

Account Debit  Credit
Cash $125,600  
Accounts receivable   $64,000
Allowance for doubtful accounts   14,000
Inventory 217,000  
Prepaid expenses 20,000  
Long-term investments   144,000
Land 300,000  
Buildings 600,000  
Machinery 100,000  
Office equipment   28,000
Accumulated depreciation:     
Buildings   24,000
Machinery   20,000
Office equipment 12,000  
Accounts payable  183,200  
Accrued liabilities   72,000
Dividends payable   128,000
Premium on bonds   32,000
Bonds payable    800,000
Preferred stock ($50 par) 60,000  
Common stock ($10 par)   156,000
Additional paid-in capital-common    223,200
Retained earnings 87,200  
  $1,705,200 $1,705,200

Additional information:

1.      Income Statement Data for Year Ended December 31, 2008
Income before extraordinary item $272,000
Extraordinary loss: Condemnation of land 132,000
Net income  $140,000

2. Cash dividends Of $128,000 were declared December 15, 2008, payable January 15, 2009. A 5% stock dividend was issued March 31, 2008, when market value was $22.00 per share.

3. Long-term investments were sold for $140,000.

4. Building and land that cost $480,000 and had book value of $300,000 were sold for $400,000. Cost of land, included in cost and book value above, was $20,000.

5. Following entry was made to record exchange of old machine for new one:

Machinery ............160,000
Cash .................. 40,000
Machinery ............ 60,000
Cash ............... 140,000

6. Fully depreciated copier machine that cost $28,000 was written off.

7. Preferred stock of $60,000 par value was redeemed for $80,000.

8. Company sold 12,000 shares of its common stock ($10 par) on June 15, 2008 for $25 a share. There were 87,600 shares outstanding on December 31, 2008.

9. Bonds were sold at 104 on December 31, 2008.

10. Land that was condemned hadbook value of $240,000.

problem:

Create statement of cash flows (indirect method). Ignore tax effects.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M922508

Have any Question? 


Related Questions in Accounting Basics

Problem 1pringle corporation has been authorized to issue

Problem 1: Pringle Corporation has been authorized to issue 23,300 shares of $100 par value, 8%, noncumulative preferred stock and 1,007,600 shares of no-par common stock. The corporation assigned a $4 stated value to th ...

Palmona co establishes a 220 petty cash fund on january 1

Palmona Co. establishes a $220 petty cash fund on January 1. On January 8, the fund shows $125 in cash along with receipts for the following expenditures: postage, $41; transportation-in, $11; delivery expenses, $13; and ...

What is the difference between a significant deficiency and

What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls under t ...

Governmental accounting1 which of the following statements

GOVERNMENTAL ACCOUNTING 1. Which of the following statements is true about U.S. taxation of foreign subsidiaries? A)The U.S. does not tax income generated on subsidiaries incorporated in foreign countries. B)U.S. multina ...

Data for the year-end adjustments for al geromes courier

Data for the year-end adjustments for Al Gerome's Courier Services are as follows: Insurance expired during the year ($950.00) Depreciation of Equipment for the year ($9,860.00) Salaries accrued at December 31 ($5100.00) ...

Harmon helmets purchased equipment for 62000 cash sold

Harmon Helmets purchased equipment for $62,000 cash, sold equipment costing $36,000 with a book value of $22,000 at a loss, and declared dividends during 2013. No new notes payable were issued during the year. Financial ...

Forwards and options respond to each of the following

Forwards and Options Respond to each of the following questions (notice that there are main questions and sub-questions below some of the main questions - don't miss any!) 1. Suppose you enter into a long 6-month forward ...

Key information for the plant city divisionkey information

Key Information For The Plant City Division Key information for the Plant City Division (PCD) of Barkley Industries for 2015 are as follows: Revenues $15,000,000 Operating Income 1,800,000 Total Assets 10,000,000 PCD man ...

The balance sheet provides a snapshot of the financial

The Balance Sheet provides a snapshot of the financial condition of a company at the end of an accounting period. It shows the assets, liabilities, and owner's equity in the business. 1. Identify each of the following as ...

Accounting and societyrequirementsbackgroundin their annual

Accounting and Society Requirements: Background: In their annual report, companies are required to include a remuneration report that documents the remuneration packages of the chief executive officer, other key executiv ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro