Please help with accounting homework

Problem

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1

. Of this amount, $

is paid in cash and $18,000 by signing a note payable.

. There was no gain or loss.

.

September 30,
2012

$8,000

97,000

$30,000

The income statement of Minerals Plus, Inc., follows:
MINERAL PLUS, INC. Income Statement Year Ended	September 30,		2012
	Revenues:
Service revenue	$235,000
	Expenses:
	Cost of goods sold	$	97,000
	Salary expense	57,000
	Depreciation expense	26,000
	Income tax expense	4,000	184,000
		Net income	$51,000
	Additional data follows:
a. Acquisition of plant assets is $11	8,000	100,000
b. Cash receipt from sale of land totals $	28,000
c. Cash receipt from issuance of common stock total $29,000.
d. Payment of note payable is $18,000.
e. Payment of dividends is	$8,000
f. From the balance sheet:
	2011
	Current Assets:
Cash		$30,000
	Accounts receivable	41,000	59,000
Inventory	9	3,000
	Current Liabilities:
	Accounts payable	$17,000
	Accrued liabilities		11,000	24,000
	Requirement:
1. Prepare Mineral Plus’s statement of cash flows for the year ended September 30, 2012, using the indirect method. Include a separate section for noncash investing and financing activities.

Problem 2

2012, reported the following:

December 31,

2012 2011
Current Assets:

Accounts receivable

Current Liabilities:

Accounts payable

Accrued liabilities

Depreciation expense

100,000

Net income

The comparative balance sheet of Jakson Educational Supply at	December 31,
Cash and cash equivalents	$88,200	$22,500
14,400	21,700
Inventories	63,600	60,400
$28,600	$27,100
10,600	11,200
Jackson’s transactions during 2012 included the following:
Payment of cash dividend	$17,200	$16,700
Purchase of equipment	54,400	Purchase of building
Issuance of long-term note payable to borrow cash	50,000	59,600
Issuance of common stock for cash	106,000
Requirements:
1. Prepare the statement of cash flows of Jackson Educational Supply for the year ended December 31, 2012. Use the indirect method to report cash flows from operating activities.
2. Evaluate Jackson’s cash flows for the year. Mention all three categories of cash flows and give reason for your evaluation.
3. If Jackson plans similar activity for 2013, what is its expected cash flow?

Problem 3

Revenues:

8,000

Expenses:

Cost of goods sold

Salary expense

28,000

Income tax expense 11,000

3,000

Net income

Additional data follows:

Requirement:

The income statement and additional data of Best Corporation follows:
BEST CORPORATION Income Statement Year Ended June 30, 2012
Sales revenue	$231,000
Dividend revenue	$239,000
$102,000
48,000
Depreciation expense
Advertising expense	13,000
Interest expense	205,000
$34,000
a. Collections from customers are $15,500 more than sales.
b. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
c. Payments to suppliers are the sum of cost of goods sold plus advertising expense.
d. Payments to employees are $1,000 more than salary expense.
e. Acquisition of plant assets is $102,000.
f. Cash receipts from sale of land total $24,000.
g. Cash receipts from issuance of common stock total $32,000.
h. Payment of long-term note payable is $17,000.
i. Payment of dividends is $10,500.
j. Cash balance, June 30, 2011, was $25,000; June 30, 2012 was $28,000.
1. Prepare Best Corporation’s statement of cash flows for the year ended June 30, 2012. Use the direct method.
2. Also differentiate between Indirect and Direct method of preparing statements of cash flows.

Problem 1

					Summerborn Manufacturing, Co., completed the following transactions during 2012:
Jan 16	Declared a cash dividend on the 5%, $100 per preferred stock (900 shares outstanding). Declared a $0.30 per share dividend on the 80,000 shares of common stock outstanding. The date of record is January 31, and the payment due date is February 15.
Feb 15	Paid the cash dividends.
Jun 10	Split common stock 2 for 1. Before the split, Summerborn had 80,000 shares of $6 par common stock outstanding.
Jul 30	Distributed a 50% stock dividend on the common stock. The market value of the common stock was $9 per share.
Oct 26	Purchased 1,000 shares of treasury stock at $13 per share.
Nov 8	Sold 500 shares of treasury stock for $15 per share.
Nov 30	Sold 300 shares of treasury stock for $8 per share.
	Requirement:
1. Record the transactions in Summerborn’s general journal.

Problem 2

. The Blacksmith board of directors restricts $99,000 of retained earnings for contingencies. Retained earnings
at December 31, 2011, were $99,000, and the company declared preferred dividends of $18,000 during 2012.

The capital structure of Blacksmith, Inc., at December 31, 2011, included 18,000 shares of $1 preferred stock and 38,000 shares of common stock. Common stock outstanding during 2012 totaled 38,000 shares. Income from continuing operations during 2012 was $108,000. The company discontinued a segment of the business at a gain of $26,000 and also had an extraordinary gain of $1	2,000
Requirements:
1. Compute Blacksmith’s earnings per share for 2012. Start with income from continuing operations. All income and loss amounts are net of income tax.
2. Show two ways of reporting Blacksmith’s retained earnings restriction.

Problem 3

5,000

2,000

Requirement:

The following information was taken from the records of Clarkson Motorsports, Inc., at November 30, 2012:
Selling expenses	$12	5,000	Common stock, $10 par, 21,000 shares authorized and issued	$210,000
General expenses	134,000	Preferred stock, $4, no-par 6,000 shares issued	240,000
Income from discontinued operations	Income tax expense:
Retained earnings, beginning	90,000	Continuing operations	70,000
Cost of goods sold	430,000	Income from discontinued operations
Treasury stock, common (1,000) shares	11,000
Net sales revenue	834,000
1. Prepare a multi-step income statement for Clarkson Motorsports for the fiscal year ended November 30, 2012. Include earnings per share.