ACTG 3110 Study Guide - Final Guide: A Roads In Zone 4 Of The Great Britain Numbering Scheme, Contingent Liability, Capital Asset
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1 Aug 2019
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Investing cash paid for capital asset -340. Investing cash paid for capital asset -40. Remaining 300k note disclosure as it"s non cash. Financing repay note payable -300 (you don"t have to add the interest) Always make note disclosure when there is something related to shares. Shares of k was issued during the year to partially. This is a related party transaction so they will need to disclose that and the transaction. Since the amount is material, but payout is noy probable. We only need to disclose at the moment, no need to accrue. This is a contingent liability, it cannot be recognized until realized so they only disclose at the moment (as there"s no virtual certainty of receipt)
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| Cash Flows from OperatingActivities | |
| Net loss | $ (2,240,578) |
| Adjustments to reconcile netloss to net cash used in operating activities: | |
| Depreciation andamortization | 1,636,003 |
| Stock-based compensation | 466,760 |
| Amortization of debt discountsand issuance costs | 91,037 |
| Inventory write-downs | 131,665 |
| Loss on disposals of fixedassets | 105,770 |
| Foreign currency transactionlosses (gains) | 52,309 |
| Loss (gain) related toSolarCity acquisition | 57,746 |
| Non-cash interest and otheroperating activities | 135,237 |
| Changes in operating assetsand liabilities, net of effect of business combinations: | |
| Accounts receivable | (24,635) |
| Inventories | (178,850) |
| Operating lease vehicles | (1,522,573) |
| Prepaid expenses and othercurrent assets | (72,084) |
| MyPower customer notesreceivable and other assets | (15,453) |
| Accounts payable and accruedliabilities | 388,206 |
| Deferred revenue | 468,902 |
| Customer deposits | 170,027 |
| Resale value guarantee | 208,718 |
| Other long-termliabilities | 81,139 |
| Net cash used in operatingactivities | (60,654) |
| Cash Flows from InvestingActivities | |
| Purchases of property andequipment excluding capital leases, net of sales | (3,414,814) |
| Maturities of short-termmarketable securities | |
| Purchases of solar energysystems, leased and to be leased | (666,540) |
| Increases in restrictedcash | (223,090) |
| Business combinations, net ofcash acquired | (114,523) |
| Net cash used in investingactivities | (4,418,967) |
| Cash Flows from FinancingActivities | |
| Proceeds from issuances ofcommon stock in public offerings | 400,175 |
| Proceeds from issuances ofconvertible and other debt | 7,138,055 |
| Repayments of convertible andother debt | (3,995,484) |
| Repayments of borrowings underSolar Bonds issued to related parties | (165,000) |
| Collateralized leaseborrowings | 511,321 |
| Proceeds from exercises ofstock options and other stock issuances | 259,116 |
| Principal payments on capitalleases | (103,304) |
| Common stock and debt issuancecosts | (63,111) |
| Purchases of convertible notehedges | (204,102) |
| Proceeds from settlements ofconvertible note hedges | 287,213 |
| Proceeds from issuances ofwarrants | 52,883 |
| Proceeds from issuance ofcommon stock in private placement | |
| Payments for settlements ofwarrants | (230,385) |
| Proceeds from investments bynoncontrolling interests in subsidiaries | 789,704 |
| Distributions paid tononcontrolling interests in subsidiaries | (261,844) |
| Payments for buy-outs ofnoncontrolling interests in subsidiaries | (373) |
| Net cash provided by financingactivities | 4,414,864 |
| Effect of exchange ratechanges on cash and cash equivalents | 39,455 |
| Net (decrease) increase incash and cash equivalents | (25,302) |
| Cash and cash equivalents,beginning of period | 3,393,216 |
| Cash and cash equivalents, endof period | 3,367,914 |
| Supplemental Non-CashInvesting and Financing Activities | |
| Shares issued in connectionwith business combinations and assumed vested awards | 10,528 |
| Acquisitions of property andequipment included in liabilities | 914,108 |
| Estimated fair value offacilities under build-to-suit leases | 313,483 |
| Supplemental Disclosures | |
| Cash paid during the periodfor interest, net of amounts capitalized | 182,571 |
| Cash paid during the periodfor taxes, net of refunds | $ 65,695 |
| Cash Flows for 2017: |
| Is the total cash flow positive ornegative? |
| Operating Activities: |
| Is the total cash flow positive ornegative? |
| What is the biggest source of cash? |
| What is the biggest use of cash? |
| Investing Activities: |
| Is the total cash flow positive ornegative? |
| What is the biggest source of cash? |
| What is the biggest use of cash? |
| Financing Activities: |
| Is the total cash flow positive ornegative? |
| What is the biggest source of cash? |
| What is the biggest use of cash? |
1. Make all adjustments on the "Adjusting Journal Entries". Remember to include a description under each journal entry.
| 12 | . On 1/1/14, ABC Corporation purchased, as a held-to-maturity investment, $200,000 of the 8%, 5-year bonds of Intuit Corporation for $177,824, | ||||||||
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| Assume the bond investment pays interest annually on 12/31 each year and that effective interest amortization is used. | |||||||||
| Note: Notice that a discount account is not used for this investment. Therefore, for purposes of this adjusting entry, amortize the discount directly to the | |||||||||
| investment account. | |||||||||
| 13. | ABC Corporation prepares an aging schedule on 12/31/14 that estimates total uncollectible accounts at $25,000. Assuming that the allowance method is used, | ||||||||
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| 14 | On 1/1/14, ABC Corporation signed a 5-year noncancelable lease for a delivery vehicle. The terms of the lease called for ABC to Corporation to make | ||||||||
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| of depreciation for the delivery vehicle. ABC Corporation's incremental borrowing rate is 10%, and the Lessor's implicit rate is unknown. No entries have yet | |||||||||
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| 15 | ABC Corporation provides a defined benefit pension plan for its employees. A combination adjusting entry should be made to correctly account for this type of pension | ||||||||
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| Note: Use the summary entry method as demonstrated and discussed in the chapter lectures on pension accounting to prepare the adjusting entry. | |||||||||
| Pension asset/liability (January 1) | $0 | ||||||||
| Actual return on plan assets | $40,000 | ||||||||
| Expected return on plan assets | $20,000 | ||||||||
| Contributions (funding) in 2014 | $37,000 | ||||||||
| Fair value of plan assets (December 31) | $75,000 | ||||||||
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| Projected benefit obligation (January 1) | $0 | ||||||||
| Service cost | $60,000 | ||||||||
| Benefits paid in 2014 | $0 | ||||||||
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| 16 | On December 31, 2014, ABC Corporation issued 1,000 shares of restricted stock to its Chief Financial Officer. ABC stock had a fair value (closing market price) of | ||||||||
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| a. The service period related to the restricted stock is 2 years. | |||||||||
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| c. The par value of the common stock is $3 per share. | |||||||||
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| Based on the income before income taxes figure from the income statement, record December's income tax expense | |||||||||
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