ACG 2021 Lecture Notes - Lecture 2: Accounts Payable, Common Stock, Accounts Receivable
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Data Table
Outdoor Adventure Company | |||
Comparative Balance Sheet | |||
December 31, 2019 and 2018 | |||
2019 | 2018 | ||
Assets | |||
Current Assets: | |||
Cash | $1,398,330 | $14,790 | |
Short-term Investments, net | 29,000 | 0 | |
Accounts Receivable, net | 1,600 | 6,300 | |
Merchandise Inventory | 400 | 0 | |
Office Supplies | 70 | 300 | |
Prepaid Rent | 0 | 2,000 | |
Property, Plant, and Equipment: | |||
Land | 615,000 | 75,000 | |
Building | 944,000 | 94,000 | |
Canoes | 13,920 | 13,920 | |
Office Furniture and Equipment | 140,000 | 0 | |
Accumulated Depreciation—PP&E | (31,920) | (1,740) | |
Total Assets | $3,110,400 | $204,570 | |
Liabilities | |||
Current Liabilities: | |||
Accounts Payable | $6,420 | $4,400 | |
Utilities Payable | 550 | 250 | |
Telephone Payable | 640 | 290 | |
Wages Payable | 3,700 | 1,200 | |
Notes Payable | 18,000 | 0 | |
Interest Payable | 630 | 30 | |
Unearned Revenue | 650 | 450 | |
Long-Term Liabilities: | |||
Notes Payable | 6,720 | 6,720 | |
Mortgage Payable | 725,000 | 0 | |
Bonds Payable | 1,000,000 | 0 | |
Discount on Bonds Payable | (1,140) | 0 | |
Total Liabilities | 1,761,170 | 13,340 | |
Stockholders' Equity | |||
Paid-In Capital: | |||
Preferred Stock | 60,000 | 0 | |
Paid-In Capital in Excess of Par—Preferred | 480,000 | 0 | |
Common Stock | 229,000 | 189,000 | |
Paid-In Capital in Excess of Par—Common | 240,000 | 0 | |
Retained Earnings | 340,230 | 2,230 | |
Total Stockholders' Equity | 1,349,230 | 191,230 | |
Total Liabilities and Stockholders' Equity | $3,110,400 | $204,570 |
1. | Theincome statement for 20192019 included the following items: | |
a. | Net income, $ 435 comma 000$435,000 | |
b. | Depreciation expense for the year, $ 30 comma 180$30,180. | |
c. | Amortization on the bonds payable, $ 380$380. | |
2. | There were no disposals of property, plant and equipment duringthe year. All acquisitions of PP&E were for cash except theland, which was acquired by issuing preferred stock. | |
3. | Thecompany issued bonds payable with a face value of $ 1 comma 000 comma 000$1,000,000 , receiving cash of$ 998 comma 480$998,480. | |
4. | Thecompany distributed 8 comma 0008,000 shares of common stock in a stock dividend when the market valuewas$ 9.00$9.00 per share. All other dividends were paid in cash. | |
5. | The common stock, except for the stock dividend, was issued forcash. | |
6. | Thecash receipt from the notes payable in 20192019 is considered a financing activity because it does not relate tooperations. |
Net Cash Provided by (Used for) Investing Activities | (990,000) |
Cash Flows From Financing Activities: | ||
Cash Receipt from Issuance of Common Stock | ||
Cash Receipt from Issuance of Notes Payable | ||
Cash Receipt from Issuance of Mortgage Payable | ||
Cash Receipt from Issuance of Bonds Payable | ||
Cash Payment of Dividends | ||
Net Cash Provided by (Used for) Financing Activities |
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he accounting staff of Harris Company has assembled the followinginformation for the year ended December 31, 2011: |
Cash sales | $ | 810,000 |
Credit sales | 2,500,000 | |
Collections on accounts receivable | 2,205,000 | |
Cash transferred from the money market fund to thegeneral bank account | 250,000 | |
Interest and dividends received | 100,000 | |
Purchases (all on account) | 1,800,000 | |
Payments on accounts payable to merchandisesuppliers | 1,470,000 | |
Cash payments for operating expenses | 1,065,000 | |
Interest paid | 180,000 | |
Income taxes paid | 95,000 | |
Loans made to borrowers | 500,000 | |
Collections on loans (excluding receipts ofinterest) | 260,000 | |
Cash paid to acquire plant assets | 3,100,000 | |
Book value of plant assets sold | 650,300 | |
Loss on sales of plant assets | 80,400 | |
Proceeds from issuing bonds payable | 2,500,000 | |
Dividends paid | 120,000 | |
Cash and cash equivalents, Jan. 1 | 489,000 | |
Cashflows from operating activities:
Cashreceived fromcustomers ________________
Interestand dividendsreceived ________________
Cashprovided by operating activities _______________
Cashpaid to suppliers and employees ______________
Incometaxespaid ________________
Interestpaid ________________
Cashdisbursed for operating activities ______________
Netcash flow from operatingactivites ______________
Cashflows from investing activities:
Proceedsfrom sales of plantassets _______________
Loansmade toborrowers _______________
Collectionsonloans ________________
Cashpaid to acquire plantassets ________________
Netcash used in investingactivities: ________________
Cashflows from financing activites:
Dividendspaid _________________
Proceedsfrom issuing bonds payable ________________
Netcash provided by financing activites _______________
Netdecrease in cash and cash equivalents ____________
Cashand cash equivalents, beginning of year __________
Cashand cash equivalents, end of year _______________
Compute the amount of collections from customers
Cash reveived fromcustomers _________________
Compute the amount of cash paid to suppliers andemployees
Cash paid to suppliers and employees _______________
Compute the amount of proceeds from sales of plantassets
Proceeds from sales of plantassets _________________
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