User Account

All Pages

The statement of shareholders equity reveals reductions of

Assignment Help Accounting Basics
Reference no: EM13582747

The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for Metagrobolize Industries. Additional information from Metagrobolize's accounting records is provided also.

METAGROBOLIZE INDUSTRIES
Comparative Balance Sheets
December 31, 2013 and 2012
($ in 000s)


2013
2012
Assets



Cash $ 600 $ 375
Accounts receivable
600
450  
Inventory
900
525  
Land
675
600  
Building
900
900
Less: Accumulated depreciation
(300)
(270)
Equipment
2,850
2,250
Less: Accumulated depreciation
(525)
(480)
Patent
1,200
1,500






$ 6,900 $ 5,850  





Liabilities



Accounts payable $ 750 $ 450
Accrued expenses payable
300
225
Lease liability-land
150
0
Shareholders' Equity



Common stock
3,150
3,000  
Paid-in capital-excess of par
750
675  
Retained earnings
1,800
1,500  






$ 6,900 $ 5,850






METAGROBOLIZE INDUSTRIES
Income Statement
For the Year Ended December 31, 2013
($ in 000s)
Revenues



Sales revenue $ 2,645

Gain on sale of land
90   $ 2,735  





Expenses



Cost of goods sold $ 600

Depreciation expense-building
30

Depreciation expense-equipment
315

Loss on sale of equipment
15

Amortization of patent
300

Operating expenses $ 500
1,760





Net income

$ 975






Additional information from the accounting records:
a. During 2013, equipment with a cost of $300,000 (90% depreciated) was sold.
b.

The statement of shareholders' equity reveals reductions of $225,000 and $450,000 for stock dividends and cash dividends, respectively.
c. The land leased during the year is classified as an asset by the company.
Required:

Prepare the statement of cash flows for Metagrobolize Industries using the indirect method. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Reference no: EM13582747

Questions Cloud

How would this application rate change if the secretarial : nixon amp ross a law firm is about to install a new accounting system that will allow the firm to track more of the
If you have not reduced your use of a hazardous material or : answer both questions with a minimum of 70 words per question1the best way to deal with hazardous waste is to reduce
In june the company produced 5400 units using 34190 grams : silmon corporation makes a product with the following standard costsinputs standard quantity or hours standard price or
Linda wants to use the 241300 proceeds 163000 20000 58300 : linda wants to use the 241300 proceeds 163000 20000 58300 241300 from sale of the securities to open a retail store
The statement of shareholders equity reveals reductions of : the comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for metagrobolize
How have the changes in the economy affected the careers : older workers are one of the few employment groups that seems to have prospered after the dot.com bust of the late 90s.
Preferred stock was purchased at its par value of 24000 the : linda clark received 182000 from her mothers estate. she placed the funds into the hands of a broker who purchased the
In 2008 the food and drug administration fda approved food : in 2008 the food and drug administration fda approved food derived from cloned animals. in addition these products
A target plane flies at 2100 meters an anti-craft gun : a target plane flies at 2100 meters. an anti-craft gun fires a projectile with an initial upward velocity of 200

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much overhead is allocated

The actual machine hours during the year are 5,500 and the actual direct labor hours are 90,000.a. How much overhead is allocated? b. What is the over/underabsorbed overhead?

  Prepare a responsibility report for the wellstone division

Prepare a responsibility report for the Wellstone Division at December 31, 2012 -

  Company forecasts the free cash flows

A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3.

  How many palnt stands must be sold to break even if greene

green fingers co. makes small plant stands that sell for 25 each. the companys annual level of production and sales is

  Debits-credits for the balance sheet and income statements

Your father runs a small auto body shop. He has decided to computerize his records and has asked you to explain the basics of accounting to him so that he can enter the data into his accounting software. 1) Explain to him the rules of debits and c..

  Dtermine the shellys marginal rate of substitution when l

shellys preferences for consumption and leisure can be expressed asucl c - 200 times l - 80 .this utility function

  Adjusting entries for the month

The office equipment has a 5-year life with no salvage value. It is being depreciated at $295 per month for 60 months. Invoices representing $1,005 of services performed during the month have not been recorded as of June 30. (a) Prepare the adjusting..

  Swindall industries uses straight-line depreciation on all

swindall industries uses straight-line depreciation on all of its depreciable assets. the company records annual

  Compute income tax payable-prepare journal entries

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2007. Prepare the income tax expense section of the income statement for 2007, beginning with the line "Income before income taxes."

  How can regulatory body such as fasb make good decisions

Why can't optimal regulation be determined? If optimal accounting regulation cannot be determined, how can a regulatory body such as the SEC or FASB make good decisions?

  Compute the per unit product costs for each

Compute the per unit product costs for each of the four products and compute this cost using ABC allocation for overhead. Show the computation for each per unit product cost in detail.

  Stojko corporation had a net decrease in cash of 15500 for

stojko corporation had a net decrease in cash of 15500 for the current year. net cash used in investing activities was

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd