2. The Larson Company prepared the following income
statement using the cash basis of
accounting:
THE...
2. The Larson Company prepared the following income
statement using the cash basis of
accounting:
THE LARSON COMPANY
Income Statement, Cash Basis
Year Ended December 31, 2017
Service revenue $460,000
Expenses 220,000
Profit $240,000
Additional data:
1. Service revenue includes $40,000 collected from a customer for
whom services
were provided in 2016, and who was billed in 2016.
2. There are an additional $15,000 of expenses that were incurred
on account, for
which payment will not be made until 2018....
DEF Industries, a private company, is considering a change to
the cash basis of accounting from...
DEF Industries, a private company, is considering a change to
the cash basis of accounting from the accrual basis of accounting.
This year, DEF reported $140,000 of total accrual basis expenses on
the income statement. At the beginning of the year, DEF had of
$21,000 of accrued expenses and $8,000 of prepaid expenses. At the
end of the year, DEF had $18,000 of accrued expenses and $4,000 of
prepaid expenses. DEF also reported $12,000 of depreciation expense
for the year,...
TaiShar Industries, a private company, is considering a change
to the cash basis of accounting from...
TaiShar Industries, a private company, is considering a change
to the cash basis of accounting from the accrual basis of
accounting. This year, TaiShar reported $35,000 of total accrual
basis expenses on the income statement. At the beginning of the
year, TaiShar had of $15,000 of accrued expenses and $2,000 of
prepaid expenses. At the end of the year, TaiShar had $24,000 of
accrued expenses and $6,000 of prepaid expenses. TaiShar also
reported $7,000 of depreciation expense for the year,...
Dr. Jones maintains her books on a cash basis. At year end, her
CPA converts them...
Dr. Jones maintains her books on a cash basis. At year end, her
CPA converts them to an accrual basis. Dr. Jones provides the
following information regarding her cash basis income for 2019:
Cash receipts $400,000 Cash payments $300,000 Balance 12/31/18
Balance 12/31/19 Other information: Accounts receivable 105,000
85,000 Unearned revenue 35,000 10,000 Accrued expenses 220,000
199,000 Prepaid expenses 22,000 27,000 Accumulated depreciation
100,000 130,000 No plant assets were sold during 2019. Calculate
accrual basis revenue, accrual basis expense and...
QUESTION 1
Co. XYZ Balance Sheet
Assets:
Cash and marketable
securities &nbs
QUESTION 1
Co. XYZ Balance Sheet
Assets:
Cash and marketable
securities $300,000
Accounts
receivable 1,125,000
Inventories 1,837,500
Prepaid
expenses 24,000
Total current
assets $3,286,500
Fixed
assets 2,700,000
Less: accumulated
depreciation 1,087,500
Net fixed
assets $1,612,500
Total
assets $4,899,000
Liabilities:
Accounts
payable $240,000
Notes
payable 825,000
Accrued
taxes 42,000
Total current
liabilities $1,107,000
Long-term
debt 975,000
Owner’s
equity 2,817,000
Total liabilities and owner’s
equity $4,899,000
Co. XYZ Income Statement
Net sales (all
credit) $6,375,000
Less: Cost of goods
sold 4,312,500
Selling and administrative
expense 1,387,500
Depreciation
expense 135,000
Interest
expense 127,000
Earnings before
taxes $
412,500
Income
taxes 225,000
Net
income $
188,000
Common stock...
Exercise 218 a-b
Hal Corp. prepared the following income statement using the cash
basis of accounting:...
Exercise 218 a-b
Hal Corp. prepared the following income statement using the cash
basis of accounting:
HAL CORP.
Income Statement, Cash Basis
For the Year Ended December 31, 2020
Service revenue (does not include $25,000 of services rendered
on account
because the collection will
not be until 2021)
$370,000
Expenses (does not include $15,000 of expenses on account
because
payment will not be made
until 2021)
220,000
Net income
$150,000
Additional data:
1.
Depreciation on a company automobile for the...
QS 16-26B Direct: Computing operating cash outflows LO P5
CRUZ, INC.
Comparative Balance Sheets
December 31,...
QS 16-26B Direct: Computing operating cash outflows LO P5
CRUZ, INC.
Comparative Balance Sheets
December 31, 2019
2019
2018
Assets
Cash
$
62,700
$
15,700
Accounts receivable, net
27,000
33,300
Inventory
56,600
62,500
Prepaid expenses
3,500
2,900
Total current assets
149,800
114,400
Furniture
70,500
82,200
Accum. depreciation—Furniture
(10,900
)
(6,200
)
Total assets
$
209,400
$
190,400
Liabilities and Equity
Accounts payable
$
9,900
$
14,000
Wages payable
5,900
3,300
Income taxes payable
1,000
1,800
Total current liabilities
16,800
19,100...
Problem 5-4A
Wolford Department Store is located in midtown Metropolis. During
the past several years, net...
Problem 5-4A
Wolford Department Store is located in midtown Metropolis. During
the past several years, net income has been declining because
suburban shopping centers have been attracting business away from
city areas. At the end of the company’s fiscal year on November 30,
2017, these accounts appeared in its adjusted trial balance.
Accounts Payable
$ 34,840
Accounts Receivable
22,360
Accumulated Depreciation—Equipment
88,400
Cash
10,400
Common Stock
45,500
Cost of Goods Sold
798,590
Freight-Out
8,060
Equipment
204,100
Depreciation Expense
17,550
Dividends...