Prep Statement of Cash Flows- Intermedia accounting Ch20
Get perfect grades by consistently using our affordable writing services. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20
Order a Similar Paper Order a Different Paper
This question is about Ch 20/ or Ch17 in Intermedia accounting
Be sure use the knowledge from intermedia accounting
G Service Company’s 2016 and 2017 balance sheets and 2017 income statement follow:
12-31-1612-31-17
Cash $900,000 $980,000
Trade receivables, net430,000450,000
Prepaid expenses100,00050,000
Plant assets1,900,000 3,100,000
Accumulated depreciation(600,000)(730,000)
Investments400,000650,000
Patents170,000200,000
$3,300,000$4,700,000
Accrued liabilities126,940152,199
Short-term debt300,000700,000
Bonds payable500,000450,000
Discount on bonds payable (6,879)(34,376)
Asset retirement obligations119,939162,257
Common stock ($1 par value)30,00034,210
Additional paid-in-capital, common stock 280,000543,940
Retained earnings1,950,0002,691,770
$3,300,000$4,700,000
Sales$5,200,000
Cost of services provided 1,800,000
Operating expenses2,100,000
Other (gains)/losses, net(64,602)
Impairment loss on plant assets 25,000
Interest expense139,602
Income before taxes 1,200,000
Income tax expense250,000
Net income$950,000
Additional information for G follows:
•G is a publicly-traded company. On 06-30-17, G issued 500 shares of its common stock in exchange for a tract of land (PP&E). At the time of the issuance, one share of G’s stock traded for $60. At the time of the issuance, the appraised value of the land was $32,000.
•On 09-15-17, G issued 600 shares of its common stock in exchange for cash. At the time of the issuance, G incurred and paid $1,200 of stock issuance costs.
•On 12-31-17, G declared and distributed a 10% stock dividend. At the time of declaration, one share of G’s stock traded for $65.
•During 2017, G declared and paid cash dividends.
•On 07-01-16, G acquired a fixed asset that will require G to spend an estimated $140,000 to dismantle the asset when G retires the asset on 07-01-21. At 07-01-15, the interest rate on US Treasury securities was 1.50% and G’s credit standing required a 2% risk premium.
•On 12-31-17, G acquired a fixed asset that will require G to spend an estimated $50,000 to dismantle the asset when G retires the asset on 12-31-27. As of 12-31-17, the interest rate on US Treasury securities was 1% and G’s credit standing at that time required a 1.75% risk premium.
•During 2017, G sold a machine (PP&E) for $25,000. The machine had an original cost of $75,000. At the time of sale, the machine’s book value was $20,000.
•During 2017, G spent $10,000 to increase the useful life of one of its fixed assets.
•G has several patents, all of which have limited lives. During 2017:
oG purchased a patent from a competitor.
oG recorded $25,000 of patent amortization.
oG spent $10,000 in legal fees relating to an unsuccessful defense of one of its patents.
•G’s investments consist of the following two investments:
oOwnership of 60% of the stock in Acme Company. G purchased this stock in 2014. During 2017, Acme recorded $100,000 of net income and declared and distributed $20,000 of dividends to its shareholders.
oOwnership of 5% of the stock in Williams Company. G purchased this stock on 12-31-17.
•On 06-30-12, G issued $500,000 of its 6%, 10-year callable term bonds dated 06-30-12. The bonds pay interest every June 30 and December 31. When G issued the bonds, similar bonds paid 6%. On 06-30-12, G incurred and paid $11,000 of bond issuance costs. On 12-31-17, after making the semi-annual interest payment, G called in (retired) one-half of the bonds at 99.
•On 12-31-17, G issued $200,000 of its 3%, 5-year term bonds dated 12-31-17. The bonds pay interest every December 31 and June 30. When G issued the bonds, similar bonds paid 3.25%. On 12-31-17, G incurred and paid $2,000 of bond issuance costs.
•G’s 2017 operating expenses includes legal, depreciation, and accretion expenses.
•G’s accrued liabilities account includes any interest payable.
•G uses the indirect method.
Prepare a statement of cash flows in good form. Be sure to label your answers as provided by OR used in. Do NOT worry about any supplemental disclosures.
Have your paper completed by a writing expert today and enjoy posting excellent grades. Place your order in a very easy process. It will take you less than 5 minutes. Click one of the buttons below.
Order a Similar Paper Order a Different Paper