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

Ace lawn care module - mini practice problemjim graham

Ace Lawn Care Module - Mini Practice Problem Jim Graham started his career mowing lawns for neighbors while he was in junior high school. Jim worked summers for the local golf course while he was in high school and now t ...

Problem 1 mat Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75

Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75 10/15/2017 1.0 1/15/2018 1.25 4/15/2018 1.5 7/15/2018 1.75 10/15/2018 2.0 1/15/2019 2.1 4/15/2019 2.2 7/15/2019 2.3 10/15/2019 2.4 Table 1: Continuou ...

Assessment one - business research report proposal initial

Assessment One - Business Research Report Proposal: Initial Research Proposal The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questi ...

Accountingi for the month of january jims landscaping

Accounting I. For the month of January Jim's Landscaping Company has the following transactions: 1. Borrowed $5,000 from First National Bank on a note due in two years. 2. Received $12,500 cash from investors and issued ...

Problem -firm has consulted with investment bankers and

Problem - Firm has consulted with investment bankers and determined the interest rate it would pay for different capital structures, as shown below. Data for the risk-free rate, the market risk premium, an estimate of fi ...

Indeed it can be said that newspapers are facing tough

Indeed it can be said that newspapers are facing tough times, and yes, the Internet can offer many things that papers cannot. Even so, the death of newspapers has been predicted by many for decades. Radio, TV and now the ...

Assignmentsongo dealers sells clothing and began trading

Assignment SONGO DEALERS sells clothing and began trading operations on 1 April 20X3. All amounts are paid by cheque, unless otherwise stated. The entity uses the perpetual inventory system and maintains a gross profit p ...

Grana enterprise incgrana enterprise inc gei is a

Grana Enterprise Inc. Grana Enterprise Inc. (GEI) is a manufacturing company with operations in Italy and Serbia. GEI in Italy: In addition to other assets, GEI owns and operates a commercial building in Italy that is ca ...

Accounting for nonfinancial assets will experience some

Accounting for nonfinancial assets will experience some major changes with the convergence to IFRS. One of the key issues will be that of fair value. Research this topic, and give your argument for or against the use of ...

Assignmentguidelines for individual case assignment cutting

Assignment Guidelines for Individual Case Assignment: Cutting Edge Instructions This is an individual assignment and therefore must be completed by the individual student without outside assistance. In order to complete ...

  • 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