|
The 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
lessor’s 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 “Additional Info” 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 STOCKHOLDERS’ 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
|
|
|
|
|
STOCKHOLDERS’ 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 Stockholders’ Equity
|
12,390.00
|
17,777.00
|
|
|
|
|
Total Liabilities and Stockholders’ Equity
|
40,386.00
|
38,856.00
|
|
|
|
|
|
|
Solution: UOP ACC 545 Week 5 Individual Assignment - ABC Company History (2015)