ACCTG 211 Quiz: ACCTG211 Quiz 4 2015 Fall

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turquoisegnu128

28 Sep 2018

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Question #1 (2 points) for each of the following activities, indicate if the activity represents: a cash inflow. C. both a cash inflow and a cash outflow: neither an inflow or outflow. Issued shares of common stock in exchange for equipment. Acquired a building paying 10% down and financing the balance. Accounts receivable increased by ,000 from last year to this year. (b) decrease net income. Sold a building at a gain of ,000. Purchased 100 shares of apple computer common stock for ,000. Question #3 (2 points) for the following activities, indicate in which section, if any, of the cash flow statement, in they would appear: operating. (d) non-cash investing and financing activities (e) would not appear. Redeemed bonds payable by issuing preferred stock. (c) financing. Borrowed funds from the bank and issued a three-year note. The following information is available for the sydney company: The following balance sheet information is also available for 2014 and 2013.

Related Questions

) For the following activities, indicate the adjustment to bemade, if any, to net income in the operating section of the cashflow statement on the indirect method: (A) Increase cash flows (B)Decrease cash flows (C) No adjustment (investing activity). (D) Noadjustment (financing activity) _____1. Purchased 1,000 shares ofAmerican Schmutz common stock for $75,000. _____2. Issued a cashdividend of $30,000. _____3. Prepaid Expenses decreased by $10,000from last year. _____4. Amortization of a patent, $5,000 _____5.Merchandise inventory increased by $25,000. _____6. Officeequipment increased $28,000. _____7. Sold a building at a loss of$5,000. _____8. Accounts Payable increased $60,000. _____9.Depreciation on equipment was $100,000. _____10. Accountsreceivable decreased by $5,000 from last year to this year.

For each of the following situations, select the best answerthat applies to consolidating financial information subsequent tothe acquisition date:

(A) Initial value method.

(B) Partial equity method.

(D) Initial value method and partial equity method but notequity method.

(E) Partial equity method and equity method but not initialvalue method.

(F) Initial value method, partial equity method, and equitymethod.

_____1. Method(s) available to the parent for internalrecord-keeping.

_____2. Easiest internal record-keeping method to apply.

_____3. Income of the subsidiary is recorded by the parent whenearned.

_____4. Designed to create a parallel between the parent'sinvestment accounts and changes in the underlying equity of theacquired company.

_____5. For years subsequent to acquisition, requires the *Centry.

_____6. Uses the cash basis for income recognition.

_____7. Investment account remains at initially recordedamount.

_____8. Dividends received by the parent from the subsidiaryreduce the parent's investment account.

_____9. Often referred to in accounting as a single-lineconsolidation.

_____10. Increases the investment account for subsidiaryearnings, but does not decrease the subsidiary account for equityadjustments such as amortizations.

raspberrybadger878

Erroneous Statement of Cash Flows

Ryan Company's bookkeeper prepared the following 2016 statement of cash flows:

Flows of Cash Statement December 31, 2016
Sources (Inflows) of Cash
Net Source from Operations
Net income	$47,800
Add: Cash receipt from sale of land	6,500
Inflow from issuing 10% bonds payable	25,000
Depreciation expense	13,200
Reduction in inventory	1,900
Less: Outflow to buy equipment	(16,400)
Increase in prepaid expenses	(700)
Cash (principal) paid on long-term note	(9,500)
ordinary gain	(2,000)
Total source from operations		$65,800
Other Sources (Inflows) of Cash
Loss on sale of land	$2,300
Increase in accounts payable	1,000
Cash from issuing preferred stock	38,700
Patent amortization expense	2,100
Total other sources of cash		44,100
Sources (Financing) Not Affecting Cash
Issuance of common stock for patent		11,000
Total inflows of cash		$120,900
Uses (Outflows) of Cash
To purchase building	$(62,000)
Increase in accounts receivable	(7,800)
For acquiring marketable securities	(7,100)
Decrease in income taxes payable	(1,400)
Total uses of cash		(78,300)
Uses (Investing) Not Affecting Cash
Acquisition of patent by issuing common stock		(11,000)
Net inflow before dividends		$ 31,600
Less: Cash dividends		(24,000)
Net increase in cash		$7,600
Cash, January 1, 2016		15,300
Cash, December 31, 2016		$22,900

After a thorough investigation, you have determined that the amounts of the items listed on the statement are correct. However, you notice several items that are incorrectly classified and reported.

Required

Prepare a corrected 2016 statement of cash flows for the Ryan Company. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

Operating Activities

________________ __________

Adjustment for non cash income items:

________________ __________

Adjustments for cash flow effects from working capital items:

________________ __________

Net cash provided by operating activities ____________

Investing Activities:

________________ __________

Net cash used for investing activities _________

Financing Activities:

________________ __________

Net cash provided by financing activies _________

Net increase in cash _________

Cash, january 1, 2016 _________

Cash, december 31, 2016 _________

Investing and Financing Activities not Affecting Cash

Investing Activities:

Acquistion of patent by issuing commons stock ______________

Financing Activities:

Issuance of common stock for patent ____________

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ACCTG 211 Quiz: ACCTG211 Quiz 4 2015 Fall

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