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1.
Los Lobos Ledger Preparation
·
Review the following information:
|
|
|||
|
12-31-2007 |
12-31-2006 |
||
|
Cash |
$ 35,000 |
$ 32,000 |
|
|
Accounts receivable |
33,000 |
30,000 |
|
|
Allowance for doubtful accounts |
(1,300) |
(1,100) |
|
|
Inventory |
31,000 |
47,000 |
|
|
Property, plant, & equipment |
100,000 |
95,000 |
|
|
Accumulated depreciation |
(16,500) |
(15,000) |
|
|
Trade accounts payable |
(25,000) |
(15,500) |
|
|
Income taxes payable |
(21,000) |
(29,100) |
|
|
Deferred income taxes |
(5,300) |
(4,600) |
|
|
8% callable bonds payable |
(45,000) |
(20,000) |
|
|
Unamortized bond discount |
4,500 |
5,000 |
|
|
Common stock |
(50,000) |
(40,000) |
|
|
Additional paid-in capital |
(9,100) |
(7,500) |
|
|
Retained earnings |
(25,200) |
(64,600) |
|
|
Sales |
(558,300) |
(778,700) |
|
|
Cost of goods sold |
250,000 |
380,000 |
|
|
Selling expenses |
141,500 |
172,000 |
|
|
General and administrative expenses |
137,000 |
151,300 |
|
|
Interest expense |
4,300 |
2,600 |
|
|
Income tax expense |
20,400 |
61,200 |
|
|
$ – |
|||
|
Additional information: |
|||
|
1. Los Lobos purchased $5,000 in equipment during 2007. |
|||
|
2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. |
|||
|
3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts totaled $4,800. |
|||
|
4. $12,000 of the debt is current portion. |
|
Cash Sales |
$72,600 |
|
|
Collections on Receivables |
477,900 |
|
|
Purchases |
(219,500) |
|
|
Purchase of Equipment |
(5,000) |
|
|
Wages |
(150,700) |
|
|
Payments to Suppliers |
(126,300) |
|
|
Tax Payments |
(27,800) |
|
|
Borrowing |
||
|
Repayment of Debt |
||
|
Interest Payments |
(3,800) |
|
|
Sale of Stock |
11,600 |
|
|
Dividends |
(51,000) |
· Prepare a statement of cash flows using the direct and indirect methods.
· Prepare a classified balance sheet.
Los Lobos Ledger Preparation
Review the following information:
|
12-31-2007 |
12-31-2006 |
|
|
Cash |
$ 35,000 |
$ 32,000 |
|
Accounts receivable |
33,000 |
30,000 |
|
Allowance for doubtful accounts |
(1,300) |
(1,100) |
|
Inventory |
31,000 |
47,000 |
|
Property, plant, & equipment |
100,000 |
95,000 |
|
Accumulated depreciation |
(16,500) |
(15,000) |
|
Trade accounts payable |
(25,000) |
(15,500) |
|
Income taxes payable |
(21,000) |
(29,100) |
|
Deferred income taxes |
(5,300) |
(4,600) |
|
8% callable bonds payable |
(45,000) |
(20,000) |
|
Unamortized bond discount |
4,500 |
5,000 |
|
Common stock |
(50,000) |
(40,000) |
|
Additional paid-in capital |
(9,100) |
(7,500) |
|
Retained earnings |
(25,200) |
(64,600) |
|
Sales |
(558,300) |
(778,700) |
|
Cost of goods sold |
250,000 |
380,000 |
|
Selling expenses |
141,500 |
172,000 |
|
General and administrative expenses |
137,000 |
151,300 |
|
Interest expense |
4,300 |
2,600 |
|
Income tax expense |
20,400 |
61,200 |
|
$ – |
||
|
Additional information: |
||
|
1. Los Lobos purchased $5,000 in equipment during 2007. |
||
|
2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. |
||
|
3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts totaled $4,800. |
||
|
4. $12,000 of the debt is current portion. |
|
Cash Sales |
$72,600 |
|
|
Collections on Receivables |
477,900 |
|
|
Purchases |
(219,500) |
|
|
Purchase of Equipment |
(5,000) |
|
|
Wages |
(150,700) |
|
|
Payments to Suppliers |
(126,300) |
|
|
Tax Payments |
(27,800) |
|
|
Borrowing |
30,000 | |
|
Repayment of Debt |
||
|
Interest Payments |
(3,800) |
|
|
Sale of Stock |
11,600 |
|
|
Dividends |
(51,000) |
Prepare a statement of cash flows using the direct and indirect methods.
Prepare a classified balance sheet.
