ACC 421 Week 4 WileyPlus Assignment – ExercisesE23-1 E23-4 E23-7 E23-11 E23-12CLICK THIS LINK FOR ANSWERS:http://homeworkf...
Sales $6,900,000Cost of goods soldBeginning inventory $1,900,000Purchases 4,400,000Goods available for sale 6,300,000Endin...
Bonds payable 1,400 1,650Capital stock 1,900 1,700Retained earnings 2,450 1,900$7,150 $6,300and so on ...E23-12 (SCF—Direc...
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Acc 421 week 4 wiley plus assignment

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Acc 421 week 4 wiley plus assignment

  1. 1. ACC 421 Week 4 WileyPlus Assignment – ExercisesE23-1 E23-4 E23-7 E23-11 E23-12CLICK THIS LINK FOR ANSWERS:http://homeworkfox.com/questions/business/503/acc-421-week-4-wileyplus-assignment-exercises/E23-1 (Classification of Transactions) Springsteen Co. had the following activity in its most recent yearof operations.(a) Pension expense exceeds amount funded.(b) Redemption of bonds payable.(c) Sale of building at book value.(d) Depreciation.(e) Exchange of equipment for furniture.(f) Issuance of capital stock.(g) Amortization of intangible assets.(h) Purchase of treasury stock.(i) Issuance of bonds for land.(j) Payment of dividends.(k) Increase in interest receivable on notes receivable.(l) Purchase of equipment.InstructionsClassify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3)investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirectmethod.E23-4 (Preparation of Operating Activities Section—Direct Method) Data for the Rodriquez Companyare presented in E23-3.data from E23-3Rodriquez CompanyINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2010
  2. 2. Sales $6,900,000Cost of goods soldBeginning inventory $1,900,000Purchases 4,400,000Goods available for sale 6,300,000Ending inventory 1,600,000Cost of goods sold 4,700,000Gross profit 2,200,000Operating expensesSelling expenses 450,000Administrative expenses 700,000 1,150,000Net income $1,050,000and so on ...E23-7 (Computation of Operating Activities—Direct Method) Presented below are two independentsituations.Situation A:Chenowith Co. reports revenues of $200,000 and operating expenses of $110,000 in its first year ofoperations, 2010. Accounts receivable and accounts payable at year-end were $71,000 and $39,000,respectively. Assume that the accounts payable related to operating expenses. Ignore income taxes.InstructionsUsing the direct method, compute net cash provided (used) by operating activities.Situation B:The income statement for Edgebrook Company shows cost of goods sold $310,000 and operatingexpenses (exclusive of depreciation) $230,000. The comparative balance sheet for the year shows thatinventory increased $21,000, prepaid expenses decreased $8,000, accounts payable (related tomerchandise) decreased $17,000, and accrued expenses payable increased $11,000.InstructionsCompute (a) cash payments to suppliers and (b) cash payments for operating expenses.E23-11 (SCF—Indirect Method) Condensed financial data of Fairchild Company for 2010 and 2009 arepresented below.Fairchild CompanyCOMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2010 AND 20092011 2010Cash $1,800 $1,100Receivables 1,750 1,300Inventory 1,600 1,900Plant assets 1,900 1,700Accumulated depreciation (1,200) (1,170)Long-term investments (Held-to-maturity) 1,300 1,470$7,150 $6,300Accounts payable $1,200 $ 800Accrued liabilities 200 250
  3. 3. Bonds payable 1,400 1,650Capital stock 1,900 1,700Retained earnings 2,450 1,900$7,150 $6,300and so on ...E23-12 (SCF—Direct Method) Data for Fairchild Company are presented in E23-11.InstructionsPrepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

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