Resource: University of Phoenix Material: Los Lobos Ledger Data
Review the information in the Los Lobos Ledger Data.
Prepare a statement of cash flows using the direct and indirect methods.
Prepare a classified balance sheet.
Jamona Corp. Scenario
Units Unit Cost
January 1, 2007 (beginning inventory) 600 $ 8.00
Purchases:
January 5, 2007 1,200 9.00
January 25, 2007 1,300 10.00
February 16, 2007 800 11.00
March 26, 2007 600 12.00
A physical inventory on March 31, 2007, shows 1,600 units on hand. Select any one of the inventory methods (LIFO, FIFO, Average Cost, or others).
Land $ 400,000
Building 1,200,000
Machinery and equipment 800,000
Total $2,400,000
Jamona Corp. gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market value of $168 per share on the date of the purchase of the property.
Jamona Corp. expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building.
Repairs to building $105,000
Construction of bases for machinery to be installed later 135,000
Driveways and parking lots 122,000
Remodeling of office space in building 161,000
Special assessment by city on land 18,000
On December 20, the company paid cash for machinery, $260,000, subject to a 2% cash discount, and freight on machinery of $10,500.
Part A
ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ 108,340 |
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Trade accounts receivable, net of allowances |
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2,866,260 |
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Other receivables |
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62,150 |
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Operating supplies, at lower of average |
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cost or market |
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58,630 |
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Prepaid expenses |
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446,050 |
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Total Current Assets |
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3,541,430 |
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PROPERTY, PLANT AND EQUIPMENT (at cost) |
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Land |
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1,950,000 |
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Buildings and improvements |
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2,327,410 |
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Equipment |
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5,015,660 |
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Other equipment and leasehold improvements |
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1,645,580 |
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total |
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10,938,650 |
Accumulated depreciation and amortization |
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(7,644,430) |
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Net Property, Plant, and Equipment |
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3,294,220 |
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OTHER ASSETS |
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Deposits and other assets |
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1,000,080 |
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TOTAL ASSETS |
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$ 7,835,730 |
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LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) |
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CURRENT LIABILITIES |
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Accounts payable |
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$ 972,160 |
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Accrued liabilities |
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2,071,270 |
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Accrued claims costs |
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793,620 |
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Federal and other income taxes |
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19,710 |
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Deferred income taxes |
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500 |
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Current maturities of long-term debt and |
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capital lease obligations |
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50,610 |
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Short-term borrowings |
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249,250 |
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Total Current Liabilities |
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4,157,120 |
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LONG-TERM LIABILITIES |
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Capital lease obligation |
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54,580 |
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Note Outstanding |
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3,000,000 |
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Mortgage Outstanding |
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608,030 |
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Other liabilities |
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95,860 |
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Total Long-term Liabilities |
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3,758,470 |
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Total Liabilities |
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7,915,590 |
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SHAREHOLDERS' EQUITY (DEFICIT) |
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Common stock, $.01 par value; authorized |
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500,000 shares; issued 231,000 shares |
2,310 |
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Additional paid-in capital |
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731,090 |
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Accumulated other comprehensive loss |
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(113,500) |
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Retained earnings (deficit) |
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(639,180) |
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Treasury stock |
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(60,580) |
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Total Shareholders' Equity (Deficit) |
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(79,860) |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ 7,835,730 |
Part B
Resource: University of Phoenix Material: Lee Corporation Equity Scenario
Review the attached Lee Corporation Equity Scenario information.
Prepare a statement of changes in owner’s equity and accompanying notes appropriate to the section.
Note: Record the necessary journal entries before attempting to calculate other comprehensive income.
Complete exercise 3-14, parts A, B, and C, on p. 127 of Advanced Accounting.