UOP ACC 545 Week 5 Individual Assignment – ABC Company History (2015)
strayer soc100 quiz 10 100 % correct answer graded one
July 12, 2018ACCT221 Final Exam Fall 2015
July 12, 2018The company uses the effective-interest method
to allocate unamortized discount or premium.
Required:
Bond amortization schedule for the life of the above bond
acquisition. Prepare all journal
entries required and related to the bond acquisition for the year 2013. NOTE: no update of the balance sheet or income
statement is required for this exercise.
But you must submit your response in the EXCEL sheet provided.
On January 1, 2013, ABC Company signed a 6-year,
noncancelable lease for a Truck. The terms of the lease called for ABC
Company to make annual payments of $10,000
at the beginning of each year, starting January 1,
2013. The truck has an estimated useful life of 7 years and zero residual
value.
The truck reverts to the lessor at the end of the lease
term. ABC Company uses the straight-line method of depreciation for all of
its assets.
ABC Company’s incremental borrowing rate is 9%, and the
lessorâs implicit rate is unknown.
Required:
Capital lease amortization schedule for the life of the above capital
lease. . Prepare all journal entries required and
related to the capital lease above for
the year 2013. NOTE: no update of the balance
sheet or income statement is required for this exercise. But you must submit your response in the
EXCEL sheet provided.
ABC Company is having financial difficulty
and has requested the bank restructure its $4 million note outstanding. The
current note has 5 remaining years and pays
an interest rate of 10%. The current market
rate for a loan of this nature is 12%. ABC’s note was issued at face value.
The bank has agreed to accept land in exchange
for relinquishing is claim on this note. The
land has a book value of land is $2.95 million with a fair value of $3.5
million.
(do not include the restructure date in your
updated statements)
Required:
Prepare the Journal entry for the above debt restructure as
described above. NOTE: no update of the balance sheet or income
statement is required for this exercise.
But you must submit your response in the EXCEL sheet provided.
Week 5 Individual Assignment:
Required:
Resource:ABC
Company History and ABC Financial Data Excel® spreadsheet and
Adjusted Balance Sheet and Income Statement from the Week 2 individual
assignment. In addition, you will
use the âAdditional Infoâ from the data sheet tab to prepare the December
31, 2013 Direct Method Cash Flow Statement.
Prepare
the Direct and Indirect Statements of Cash Flow for
December 31, 2013 using the Adjusted Balance Sheet and Income Statement
from the Week 2 Individual Assignment.
Submit
the Direct and Indirect Cash Flow Statements in a Microsoft®
Excel®spreadsheet.
ABC Company
Consolidated Balance
Sheet
For the Year Ended
December 31, 2013
2013
2012
ASSETS:
Current Assets:
Cash and Cash Equivalents
1,929.00
2,494.00
Receivables, net
1,398.00
1,413.00
Inventory
11,057.00
11,512.00
Inventory Correction
1,285.00
–
Other Current Assets
895.00
900.00
Total Current Assets
16,564.00
16,319.00
Property and Equipment, at cost
39,064.00
38,491.00
Less: Accumulated Depreciation and
Amortization
(15,716.00)
(17,473.00)
Accumulated depreciation correction
(1,505.00)
–
Net Property and Equipment
21,843.00
21,018.00
Goodwill
1,289.00
1,046.00
Deferred Tax Asset
690.00
473.00
Total Assets
40,386.00
38,856.00
LIABILITIES AND STOCKHOLDERSâ EQUITY:
Current Liabilities:
Accounts Payable
5,797.00
5,192.00
Accrued Salaries and Related Expenses
1,428.00
1,200.00
Sales Taxes Payable
396.00
472.00
Deferred Revenue
1,337.00
1,262.00
Income Taxes Payable
12.00
(107.00)
Current Installments of Long-Term Debt
33.00
(783.00)
Other Accrued Expenses
1,746.00
1,794.00
Total Current Liabilities:
10,749.00
9,030.00
Long-Term Debt, excluding current
installments
14,691.00
9,475.00
Other Long-Term Liabilities
2,042.00
2,029.00
Deferred Tax Liability
514.00
545.00
Total Liabilities:
27,996.00
21,079.00
STOCKHOLDERSâ EQUITY:
Common Stock
88.00
88.00
Paid-In Capital
8,402.00
7,948.00
Retained Earnings
23,048.00
20,038.00
Accumulated Other Comprehensive Income
46.00
397.00
Treasury Stock
(19,194.00)
(10,694.00)
Total Stockholdersâ Equity
12,390.00
17,777.00
Total Liabilities and Stockholdersâ Equity
40,386.00
38,856.00
ABC Company
Income Statement
For the Year Ended December 31, 2013
2013
2012
NET SALES
78,812.00
74,754.00
Cost of Goods Sold
51,422.00
48,912.00
GROSS PROFIT
27,390.00
25,842.00
Operating Expenses:
Selling, General and Administrative
16,597.00
16,508.00
Depreciation and Amortization
1,627.00
1,568.00
Total Operating Expenses
18,224.00
18,076.00
OPERATING INCOME
9,166.00
7,766.00
Interest and Other (Income) Expense:
Interest and Investment Income
(12.00)
(87.00)
Interest Expense
711.00
632.00
Interest and Other, net
699.00
545.00
EARNINGS BEFORE PROVISION FOR INCOME TAXES
8,467.00
7,221.00
Income Taxes
(3,082.00)
(2,686.00)
NET INCOME
5,385.00
4,535.00