<\/p>\n
This question is about Ch 20\/ or Ch17 in Intermedia accounting<\/p>\n
Be sure use the knowledge from intermedia accounting<\/p>\n
G Service Company\u2019s 2016 and 2017 balance sheets and 2017 income statement follow:<\/p>\n
12-31-1612-31-17<\/p>\n
Cash $900,000 $980,000<\/p>\n
Trade receivables, net430,000450,000<\/p>\n
Prepaid expenses100,00050,000<\/p>\n
Plant assets1,900,000 3,100,000<\/p>\n
Accumulated depreciation(600,000)(730,000)<\/p>\n
Investments400,000650,000<\/p>\n
Patents170,000200,000 <\/p>\n
$3,300,000$4,700,000<\/p>\n
Accrued liabilities126,940152,199<\/p>\n
Short-term debt300,000700,000<\/p>\n
Bonds payable500,000450,000<\/p>\n
Discount on bonds payable (6,879)(34,376)<\/p>\n
Asset retirement obligations119,939162,257<\/p>\n
Common stock ($1 par value)30,00034,210<\/p>\n
Additional paid-in-capital, common stock 280,000543,940<\/p>\n
Retained earnings1,950,0002,691,770<\/p>\n
$3,300,000$4,700,000<\/p>\n
Sales$5,200,000<\/p>\n
Cost of services provided 1,800,000<\/p>\n
Operating expenses2,100,000<\/p>\n
Other (gains)\/losses, net(64,602)<\/p>\n
Impairment loss on plant assets 25,000<\/p>\n
Interest expense139,602<\/p>\n
Income before taxes 1,200,000<\/p>\n
Income tax expense250,000<\/p>\n
Net income$950,000<\/p>\n
Additional information for G follows:<\/p>\n
\u2022G 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\u2019s stock traded for $60. At the time of the issuance, the appraised value of the land was $32,000.<\/p>\n
\u2022On 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.<\/p>\n
\u2022On 12-31-17, G declared and distributed a 10% stock dividend. At the time of declaration, one share of G\u2019s stock traded for $65.<\/p>\n
\u2022During 2017, G declared and paid cash dividends.<\/p>\n
\u2022On 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\u2019s credit standing required a 2% risk premium.<\/p>\n
\u2022On 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\u2019s credit standing at that time required a 1.75% risk premium.<\/p>\n
\u2022During 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\u2019s book value was $20,000.<\/p>\n
\u2022During 2017, G spent $10,000 to increase the useful life of one of its fixed assets.<\/p>\n
\u2022G has several patents, all of which have limited lives. During 2017:<\/p>\n
oG purchased a patent from a competitor.<\/p>\n
oG recorded $25,000 of patent amortization.<\/p>\n
oG spent $10,000 in legal fees relating to an unsuccessful defense of one of its patents.<\/p>\n
\u2022G\u2019s investments consist of the following two investments:<\/p>\n
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.<\/p>\n
oOwnership of 5% of the stock in Williams Company. G purchased this stock on 12-31-17.<\/p>\n
\u2022On 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.<\/p>\n
\u2022On 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.<\/p>\n
\u2022G\u2019s 2017 operating expenses includes legal, depreciation, and accretion expenses.<\/p>\n
\u2022G\u2019s accrued liabilities account includes any interest payable.<\/p>\n
\u2022G uses the indirect method.<\/p>\n
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.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
This question is about Ch 20\/ or Ch17 in Intermedia accounting Be sure use the knowledge from intermedia accounting G Service Company\u2019s 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 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/274701"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=274701"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/274701\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=274701"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=274701"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=274701"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}