Show All Work: 1. Barry’s Corporation has the following information at December 31, 2019: Loss on Discontinued Operations $90,000 Retained Earnings Balance 1/1 19 $980,000 Interest Revenue $70,000...

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Show All Work: 1. Barry’s Corporation has the following information at December 31, 2019: Loss on Discontinued Operations$90,000 Retained Earnings Balance 1/1 19$980,000 Interest Revenue$70,000 Sales Revenue$15,000,000 Selling & Administrative Expenses$2,700,000 Write-off/Impairment Goodwill$520,000 Cost of Goods Sold$6,000,000 Loss due to Flood Damage$390,000 (Non-Recurring/Replaces Extraordinary) Dividends Declared-Common Stock$250,000 Gail on Sale of Investments$110,000 (Normal & Recurring ) Dividends Declared-Preferred Stock$80,000 Cost of Goods Sold Overstated in 2018$20,000 Barry has a normal corporate tax rate of 25%. There are 10,000 shares of Common Stock Outstanding Required: a. Prepare a Multi-Step Income Statement b. Prepare a Statement of Retained Earnings 2. William Wentz has provided you with the following Comparative Balance Sheet for Dec 31, 2019 & 2018 20192018 Cash$63,000$22,000 Accounts Receivable$82,000$66,000 Inventory$180,000$189,000 Land$71,000$110,000 Equipment$270,000$200,000 Accum Dep-Equip($69,000)($42,000) Accounts Payable$34,000$47,000 Bonds Payable-10 year$150,000$200,000 Common Stock $1 par214,000$164,000 Retained Earnings$199,000$134,000 Additional Information: 1. Net Income for Dec 31, 2019 was $105,000 2. Cash Dividends of $40,000 were declared and paid during 2019 3. Bonds Payable of $50,000 were retired through the issuance of Common Stock Required: a. Prepare a Statement of Cash Flows for 2019. 3. Keira’s Kite has decided to expand its operations. The bookkeeper recently completed the balance sheet in order to obtain additional funds for expansion. Keira’s Kite Inc Trial Balance For Year End DECEMBER 31, 2019 Cash $ 105,000 Accounts receivable (net) 411,000 Inventories at lower of Cost or Value561,000 Trading securities—at cost (fair value $65,000) 50,000 Property, plant, and equipment Building (net) 1,561,000 Offi ce equipment (net) 125,000 Intangible assets Goodwill528,000 Prepaid expenses 39,000 Accounts payable 367,000 Notes payable (due next month) 75,000 Pension obligation 361,000 Unearned revenue 26,000 Premium on bonds payable 36,000 Long-term liabilities Bonds payable 1,500,000 Common stock, $1.00 par, authorized 1,000,000 shares, issued 610,000 610,000 Additional paid-in capital 200,000 Retained earnings $XX Instructions Prepare the Balance Sheet from the available information. 4. Stafford Corporation provides you with the following information regarding their ACCOUNTS RECEIVABLE: Net Credit Sales$6,525,000 Balance of Accounts Receivable at year end$1,600,000 Allowance for Uncollectible Account$120,000 (credit bal.) Stafford uses the following % to estimate the Accounts Receivable expected NOT to be collected: Aging Category% Estimated to be Uncollectible Current1% 1-30 Days Past Due5% 31-60 Days Past Due15% 61-90 Days Past Due30% Over 90 Days Past Due95% Stafford’s Aged Account Receivable Schedule is as follows: CustomerCurrent 1-30 31-6061-90Over 90Totals A. $200,000 $400,000$600,000 B. $200,000$200,000 C. $100,000 $200,000$300,000 D.$300,000 $200,000$500,000 Totals: $200,000 $300,000 $600,000 $300,000 $200,000 1,600,000 Required: 1. Record the JOURNAL Entry to record the ADJUSTMENT for Bad Debt Expense and Allowance for Uncollectible accounts for the year. 2. What is the REALIZABLE Value of Accounts Receivable AFTER the entry is recorded and the Allowance for Uncollectible Accounts is updated? 5. The following information pertains to Keira’s Kite Incorp. Aug 30th 2019: Balance Per Bank$769 Debit Memo: Bank Service Charge$24 Balance Per Books-Cash Ledger Balance$1,243 Outstanding Checks$87 Deposits in Transit$547 Error: Keira recorded a deposit of $890 as only $880 Required: a. Prepare the Bank Reconciliation for Aug 30, 2019 b. Record the Journal entries to ADJUST the Cash Ledger c. What is the ending balance in the Cash Ledger AFTER the adjustments are recorded?
Jul 31, 2021
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