Author: Anonymous

Casanova Company provided the following information for the preparation of its Year 3 Statement of Cash Flows; net income was $125,000 and the beginning Year 3 Cash balance was $40,000. Decrease in Accounts Receivable                       $27,000 Cash Received for Issuance of Bonds               $70,000 Cash Received for Sale of Building            $108,000 Decrease in Inventory                                 $14,000 Cash Paid to Purchase Equipment                      $52,000 Loss on Sale of Building                                             $16,000 Cash Paid to Reduce Long-Term Debt               $19,000 Cash Paid for Dividends                                            $26,000 Common Stock Exchanged for Land          $41,000 Depreciation Expense                                 $12,000  The balance of the Cash account as of December 31, Year 3 is:

Casanova Company provided the following information for the preparation of its Year 3 Statement of Cash Flows; net income was $125,000 and the beginning Year 3 Cash balance was $40,000. Decrease in Accounts Receivable                       $27,000 Cash Received for Issuance of Bonds               $70,000 Cash Received for Sale of Building            $108,000 Decrease in Inventory                                 $14,000 Cash Paid to Purchase Equipment                      $52,000 Loss on Sale of Building                                             $16,000 Cash Paid to Reduce Long-Term Debt               $19,000 Cash Paid for Dividends                                            $26,000 Common Stock Exchanged for Land          $41,000 Depreciation Expense                                 $12,000  In the Financing section of the Statement of Cash Flows, the company will report:

The application of depreciation expense and bad debt expense are examples of the:

Explain the journal entries, in the space below, for the following transactions: On July 1, Year 5, Psycho Sid Company had convertible bonds outstanding with a par value of $210,000, a carrying value of $235,000, and a stated interest rate of 10%. On that date, bondholders exercised their right to convert all outstanding bonds to 5,000 shares of common stock with a $20 par value.  Provide the journal entry for Psycho Sid to record the conversion of the bonds to common stock. You do NOT need to worry form.  Just tell me the date and what accounts are debited and credited and the amounts.  For example, your response might be on January 1, debit Supplies 100 and credit Accounts Payable 100.

Tatiana Enterprises purchased land at a cost of $220,000.  The company also paid $7,000 in accrued real estate taxes, $3,000 in titling fees, and $5,000 in closing costs.  Tatiana paid $15,000 to construct a fence on the land, which was necessary for confidentiality.  There was a dilapidated building on the land that was razed at a cost of $20,000; the material was later salvaged for $10,000.  The cost basis of the land is:

GOAT Corporation reported the following selected account balances on its financial statements for the two most recent reporting periods (Year 2 is the most current):   Account Title Year 2 Year 1 Cash $224,000 $185,000 Accounts Receivable (net) 39,000 47,000 Inventory 108,000 73,000 Accounts Payable 17,000 26,000 Sales 432,000 369,000 Cost of Goods Sold 152,000 143,000 Operating Expenses 103,000 94,000 How much cash was paid to suppliers in Year 2?

On August 3, Vicky-Vesta Dance Corporation paid $400,000 to Flavius Aetius Builders for the construction of a building.  Construction was completed on October 16; during this period, Vicky-Vesta calculated actual interest of $32,000 and avoidable interest of $18,000.  The cost basis of the building should be:

The primary objective of financial reporting is to:

Titanic Corporation exchanged an old boat, previously used in operations, to Jack & Rose Partners, for a new boat.  At the time of the exchange, the old boat had a recorded cost of $720,000, Accumulated Depreciation of $140,000, and a fair market value of $600,000.  Titanic also paid $145,000 cash for the new

GOAT Corporation reported the following selected account balances on its financial statements for the two most recent reporting periods (Year 2 is the most current):   Account Title Year 2 Year 1 Cash $224,000 $185,000 Accounts Receivable (net) 39,000 47,000 Inventory 108,000 73,000 Accounts Payable 17,000 26,000 Sales 432,000 369,000 Cost of Goods Sold 152,000 143,000 Operating Expenses 103,000 94,000 How much cash was collected from customers in Year 2?