Accounting- please see the attached.
1. Pax Corp. uses the direct method to prepare its statement of cash flows. Pax's trial balances at December 31, 2017 and 2016 are as follows: December 31 2017 2016 Debits Cash $ 40,200 $ 36,000 Accounts receivable 32,000 27,000 Inventory 29,680 45,000 Property, plant, & equipment 72,000 75,000 Unamortized bond discount 3,600 4,000 Cost of goods sold 220,000 345,000 Selling expenses 118,000 140,000 General and administrative expenses 100,100 130,000 Interest expense 4,135 2,500 Income tax expense 14,400 41,200 $634,115 $845,700 Credits Allowance for uncollectible accounts 1,100 $ 1,000 Accumulated depreciation 10,500 12,000 Trade accounts payable 22,000 15,500 Income taxes payable 18,000 24,100 Deferred income taxes 6,000 4,000 8% callable bonds payable 35,000 18,000 Common stock 38,000 22,000 Additional paid-in capital 8,100 6,500 Retained earnings 57,915 52,000 Sales 437,500 690,600 $634,115 $845,700 · Pax purchased $4,000 in equipment during 2017. · Pax allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. There were no write-offs of accounts receivable during 2017. Required: For Pax’s December 31, 2017 Statement of Cash Flows, answer the following questions: a. What is cash collected from customers for December 31, 2017? b. What is cash paid for purchases of merchandise inventory goods to be sold? c. What is cash paid for interest? d. What is cash paid for income taxes? e. What is cash paid for selling expenses? 2. Diebold Corp. made $1,500,000 in sales during 2017. Twenty percent of these were cash sales. During the year, $72,000 of accounts receivable were written off as being uncollectible. In addition, $40,000 of the accounts that were written off in 2016, were unexpectedly collected in 2017. At its’ year-end December 31, 2017, Diebold had a balance of $525,000 in accounts receivable. The balance in the Allowance for Doubtful Accounts general ledger account was $112,500 credit at December 31, 2016. Age (days) Accounts Receivable 1-30 $ 210,000 31-60 105,000 61-90 52,500 91-120 126,000 Over 120 31,500 Total $525,000 Required: 1) Prepare journal entries to record the following 2017 transactions: a. The write-off of $72,000 b. The recovery of $40,000 2) Recalculate the balance in the Allowance for Doubtful Accounts general ledger account at December 31, 2017. 3) The estimated uncollectible accounts at December 31, 2017 are calculated as follows: Age (days) Estimated Loss percentage 1-30 2% 31-60 4% 61-90 6% 91-120 10% Over 120 40% Required: Prepare the adjusting entry required at December 31, 2017. 3. Poe, Inc. had the following bank reconciliation at March 31, year 2: Balance per bank statement, 3/31/Y2$46,500 Add deposit in transit 10,300 56,800 Less outstanding checks 12,600 Balance per books, 3/31/Y2 $44,200 Data per bank for the month of April year 2 follow: Deposits$58,400 Disbursements49,700 All reconciling items at March 31, year 2, cleared the bank in April. Outstanding checks at April 30, year 2, totaled $7,000. There were no deposits in transit at April 30, year 2. What is the cash balance per books at April 30, year 2? 4. Bob Smith borrowed $200,000 on January 1, 2015. The interest rate of 8% is compounded semiannually to be repaid January 1, 2025. To repay this Bob wants to start making five equal annual deposits into fund that earns 6% annum on January 1, 2020. Required: What is the amount of the five annual deposits that Bob needs to make? 5. Timken Company issues a $1,500,000 bond at 10% for 10 years. The market interest rate is 9%. Required: 1. What is the issue price of these bonds and the bond discount or premium? Assume semi-annual interest payments. 2. Assume that Timken uses the effective interest method to amortize the bond discount or premium for the semiannual interest payments, what is the interest expense and the amount of cash paid on the first interest payment? 6. On December 31, year 1, Day Co. leased a new machine from Parr with the following pertinent information: Lease term8 years Annual rental payable at beginning of each year$60,000 Useful life of machine10 years Day's incremental borrowing rate15% Implicit interest rate in lease (known by Day)12% The lease is not renewable, and the machine reverts to Parr at the termination of the lease. The cost of the machine on Parr's accounting records is $425,000. Required: At the beginning of the lease term, what should Day record as a lease liability? Page 1 of 4