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The balance sheet accounts of Greenville Corporation at the-(Answered)

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Question

The balance sheet accounts of Greenville Corporation at the beginning and end of 2014 are:

31-Dec-14

1-Jan-14

Cash

$99,435

$110,700

Accounts Receivable

$424,600

$380,900

Inventory

$635,740

$576,475

Prepaid Expenses

$20,000

$12,000

Investment in subsidiary

$200,000

$0

Held to Maturity Debt Securities

$16,460

$14,850

Land

$100,000

$100,000

Buildings

$525,000

$400,000

Equipment

$381,000

$290,000

Patents

$86,000

$70,000

Trademarks

$25,000

$35,000

Bond Discount and issue costs

$1,165

$6,075

Total Debits

$2,514,400

$1,996,000

Accounts payable

$534,000

$508,000

Income Taxes payable

$68,000

$34,500

Salaries and wages payable

$73,500

$12,900

Allowance for doubtful accounts

$25,000

$23,000

Accumulated depreciation - buildings

$248,000

$230,000

Accumulated depreciation - equipment

$160,000

$103,000

Long-term notes payable

$75,000

$75,000

Bonds payable

$400,000

$300,000

Premium on bonds payable

$7,762

$0

Common stock

$150,000

$125,000

Paid-in capital in excess of par-common stock

$568,000

$418,000

Retained earnings

$205,138

$166,600

Total credits

$2,514,400

$1,996,000

You also have the following information:

On November 1, 2014, 25,000 shares of $1 par stock were sold for $175,000.

A patent was purchased for $31,000

During the year, equipment that had a cost basis of $26,400 and on which there was accumulated depreciation of $5,800 was sold for $15,000. No other plant assets were sold during the year.

The 10%, $300,000 40-year bonds were dated and issued on January 2, 2000. Interest was payable on June 30 and December 31. They were sold originally at 97. These bonds were retired at 101 plus accrued interest on May 31, 2014.

The 6%, $400,000 20-year bonds were dated January 1, 2014, and were sold on May 31 at 102 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $1,200.

Greenville Corporation acquired 60% control in Pediatric Company on January 2, 2014, for $146,000. The income statement of Pediatric Company for 2014 shows a net income of $90,000.

Extraordinary repairs to buildings of $12,600 were charged to Accumulated Depreciation ? Buildings.

Interest paid in 2014 was $31,000 and income taxes paid were $38,000.

Net income for the year totaled $76,538.

Instructions

prepare a statement of cash flows using the indirect method. The company uses straight-line amortization for bond interest.

Analyze the activities of Greenville Corporation during 2014. Limit: 1 page double spaced with one inch margins.


The balance sheet accounts of Greenville Corporation at the beginning and end of 2014 are:

 

31-Dec-14

 

$99,435

 

$424,600

 

$635,740

 

$20,000

 

$200,000

 

$16,460

 

$100,000

 

$525,000

 

$381,000

 

$86,000

 

$25,000

 

$1,165

 


 

1-Jan-14

 

$110,700

 

$380,900

 

$576,475

 

$12,000

 

$0

 

$14,850

 

$100,000

 

$400,000

 

$290,000

 

$70,000

 

$35,000

 

$6,075

 


 

Total Debits

 

Accounts payable

 

Income Taxes payable

 

Salaries and wages payable

 

Allowance for doubtful accounts

 

Accumulated depreciation - buildings

 

Accumulated depreciation - equipment

 

Long-term notes payable

 

Bonds payable

 

Premium on bonds payable

 

Common stock

 

Paid-in capital in excess of par-common

 

stock

 

Retained earnings

 


 

$2,514,400

 

$534,000

 

$68,000

 

$73,500

 

$25,000

 

$248,000

 

$160,000

 

$75,000

 

$400,000

 

$7,762

 

$150,000

 


 

$1,996,000

 

$508,000

 

$34,500

 

$12,900

 

$23,000

 

$230,000

 

$103,000

 

$75,000

 

$300,000

 

$0

 

$125,000

 


 

$568,000

 

$205,138

 


 

$418,000

 

$166,600

 


 

Total credits

 


 

$2,514,400

 


 

$1,996,000

 


 

Cash

 

Accounts Receivable

 

Inventory

 

Prepaid Expenses

 

Investment in subsidiary

 

Held to Maturity Debt Securities

 

Land

 

Buildings

 

Equipment

 

Patents

 

Trademarks

 

Bond Discount and issue costs

 


 

You also have the following information:

 

1. On November 1, 2014, 25,000 shares of $1 par stock were sold for $175,000.

 

2. A patent was purchased for $31,000

 

3. During the year, equipment that had a cost basis of $26,400 and on which there was

 

accumulated depreciation of $5,800 was sold for $15,000. No other plant assets were

 

sold during the year.

 

4. The 10%, $300,000 40-year bonds were dated and issued on January 2, 2000. Interest

 

was payable on June 30 and December 31. They were sold originally at 97. These bonds

 

were retired at 101 plus accrued interest on May 31, 2014.

 


 

5. The 6%, $400,000 20-year bonds were dated January 1, 2014, and were sold on May 31

 

at 102 plus accrued interest. Interest is payable semiannually on June 30 and December

 

31. Expense of issuance was $1,200.

 

6. Greenville Corporation acquired 60% control in Pediatric Company on January 2, 2014,

 

for $146,000. The income statement of Pediatric Company for 2014 shows a net income

 

of $90,000.

 

7. Extraordinary repairs to buildings of $12,600 were charged to Accumulated

 

Depreciation ? Buildings.

 

8. Interest paid in 2014 was $31,000 and income taxes paid were $38,000.

 

9. Net income for the year totaled $76,538.

 

Instructions

 

a) prepare a statement of cash flows using the indirect method. The company uses straightline amortization for bond interest.

 

b) Analyze the activities of Greenville Corporation during 2014. Limit: 1 page double

 

spaced with one inch margins.

 


 

 

Paper#9210156 | Written in 27-Jul-2016

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