Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
FreeBird Company, a merchandiser, recently completed its 2013 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's balance sheet and income statement follow:
FREEBIRD COMPANY
Comparative Balance Sheet
December 31, 2013 and 2012
2013
2012
Assets
Cash
$ 49,200
$ 73,500
Accounts receivable
65,830
51,000
Merchandise inventory
276,000
252,500
Prepaid expenses
1,000
1,600
Equipment
159,000
106,500
Accum. depreciation-Equipment
(31,000)
(40,000)
Total assets
$520,030
$445,100
Liabilities and Equity
Accounts payable
$ 58,555
$ 112,000
Short-term notes payable
9,000
7,000
Long-term notes payable
65,000
48,500
Common stock, $5 par value
162,750
150,750
Paid-in capital in excess of par, common stock
36,000
0
Retained earnings
188,725
126,850
Total liabilities and equity
Income Statemen
For Year Ended December 31, 2013
Sales
$584,000
Cost of goods sold
283,000
Gross profit
301,000
Operating expenses
Depreciation expense
$ 20,000
Other expenses
132,400
152,400
Other gains (losses)
Loss on sale of equipment
5,875
Income before taxes
$142,725
Income taxes expense
24,250
Net income
$118,475
Additional information on year 2013 transactions:
a.
The loss on the cash sale of equipment was $5,875 (details in b).
b.
Sold equipment costing $46,500, for a loss of $5,875.
c.
Purchased equipment costing $99,000 by paying $35,000 cash and signing a long-term note payable for the balance.
d.
Borrowed $2,000 cash by signing a nonsales-related short-term note payable.
e.
Paid $47,500 cash to reduce the long-term notes payable.
f.
Issued 2,400 shares of common stock for $20 cash per share.
g.
Net income and dividends were the only items that affected retained earnings.
1. What is the amount of dividends declared and distributed in 2013?
2. Determine the cash received by Spirit for the equipment sold in item B above.
Helping Hands uses an accrual basis accounting. For which of the events above should an expense be recorded in May? Ineach case, how much expense should be recorded? If an eventdoes not involve an expense, specify why not.
1.the basis for classifying assets as current or noncurrent is conversion to cash withina.the accounting cycle or one
Discuss the impact of the newly-passed Financial Regulation Bill after the 2008 financial crisis on the bond rating agencies.
There are many different types of jobs in accounting, and one of those has to do with Management Accounting. How does this differ from the other forms of Accounting?
the following information concerns production in the forging department for september. all direct materials are placed
What amount of dividends must the company pay the preferred shareholders in 2009 if they wish to pay the common stockholders a dividend?
If Colgate's equity cost of capital is 8.5% per year and its dividend payout ratio remains constant, for what price does the dividend-discount model predict Colgate stock should sell?
Prepare an incremental analysis report for Barnes Company which can serve as informational input into this make or buy decision.
The heating division of ITA International produces a heating element that it sells to its customers for $42 per unit. Its variable cost per unit is $19, and its fixed cost per unit is $10. What is the minimum transfer price that the heating divisio..
During 2010 Williamson Company changed from FIFO to weighted-average inventory pricing.
What are the different tax consequences between paying down the mortgage (debt) and assuming a new mortgage (debt) for Federal income tax purposes?
Calculate the income recognized by Parcell under the percentage-of-completion method of accounting in each of the years 2007, 2008, and 2009.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd