Accounting

Anonymous
timer Asked: Dec 12th, 2018
account_balance_wallet $50

Question Description

You must provide beginning balance sheet and ALL assumptions as well as ending income statement, balance sheet, and STATEMENT OF CASH FLOWS, in good form.

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Prepare the January 31, 2017 Statement of Cash Flows, Indirect and Direct January 1, 2017 Balance Sheet Assets Cash Accts. Rec. Supplies Prepaid Insurance Fixed Assets Accum. Depr Total Assets Liabilities and Equity $225,000 $200,000 $75,000 $120,000 $1,804,000 ($1,200,000) $1,224,000 Wages Payable Rent Payable Loan Payable Total Liabilities $104,000 $150,000 $400,000 $654,000 Common Stock ($0 par) Retained Earnings Total Equity $320,000 $250,000 $570,000 Total Liab and Equity $1,224,000 January 1, 2017 Purchased new Zamboni machine (equipment) for $265,000 (paid cash). The machine has a life of 5 years an expected residual value of $25,000. Sold old Zamboni that had a cost of $200,000 and accumulated depreciation of $100,000 for $90,000. January 4 Paid wages and rent which were earned in 2016. January 6 After a 2 for 1 stock split, the company issued $100,000 in stock. January 8 Sold 40,000 tickets at $20 per ticket, half for credit, half for cash. January 16 Received $100,000 for tickets sold in December 2016. January 31 Employees earned $120,000, but will not be paid until February 2017. January 31 Consumed $30,000 in existing supplies during January 2017. January 31 Made monthly loan interest payment. Loan was initiated on December 31, 2016 and is a one year loan with an annual interest rate of 12%. January 31 Dividends of $100,000 were declared and paid. January 31 Issued a $100,000 face value bond with a coupon rate of 8%. The bond will mature in 5 years and the market rate at the time of issuance was 8%. Other Info: Existing fixed assets have a life of 3 years and was acquired on January 1, 2015 (excluding new zamboni). Other Info: All fixed assets are depreciated using the straight line method. Other Info: Insurance policy that was paid in 2016 expires on December 31, 2017. Other Info: Assume no taxes in this problem. ...
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Tutor Answer

Naomipat
School: UC Berkeley

Attached.

The following balance relates to Unity Traders as at January 1, 2017
January 1, 2017 Balance Sheet
Assets

Liabilities and Equity

Cash
Accts. Rec.

$220,000
$100,000

Salaries Payable
Accounts Payable

$250,000
$200,000

Inventory

$50,000

Rent Payable

$250,000

Rent Payable
Supplies
Prepaid Insurance
Fixed Assets
Accum. Depr

Total Assets

$150,000
$80,000
$100,000
$2,000,000
($400,000)

$2,300,000

Loan Payable
Total Liabilities

$600,000
$1,300,000

Common Stock ($0 par)
Retained Earnings
Total Equity

$700,000
$300,000
$1000,000

Total Liab and Equity $2,300,000

During the year, the following transactions occurred
January 1

Purchased new equipment for $200,000 (paid cash). The equipment has a
life of 4 years an expected residual value of $20,000. Sold old fixed asset
that had a cost of $100,000 a...

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