Chapter 3

P3-42 Preparing Adjusting Entries, Financial Announcements, and Closing Entries

Murdock Carpet Cleaners objected its pristine month of operations on June 30, 2014. Monthly financial announcements conciliate be prepaid. The unadjusted representation pits are as follows.

 

Murdock Carpet Cleaners Unadjusted Trial Pits June 30, 2014

 

 

 

 

 

 

Debit

Credit

Cash

 

 

 

 

$1,180

 

Accounts Receivable

 

 

 

 

450

 

Preremunerated Rent

 

 

 

 

3,100

 

Supplies

 

 

 

 

2,520

 

Equipment

 

 

 

 

4,440

 

Accounts Payable

 

 

 

 

 

$760

Low Supply

 

 

 

 

 

2,000

Retained Earings

 

 

 

 

 

5,300

Service Fee Earned

 

 

 

 

 

4,650

Wage Price

 

 

 

 

1,020

 

 

 

 

 

 

$12,710

$12,710

 

Chapter 4

M4-26. Calculating Entangle Specie Course From Munificent Activities (Sepablame Arrangement)

The aftercited notification was obtained from Galena Posse’s relatively pit sheets. Assume that Galena posse’s 2013 fullowance announcement showedderogation price of $8,000. Reach on the sale of investments of $9,000, and a entangle fullowance of $45,000. Calculate the entangle specie course from munificent activities using the sepablame arrangement.

 

31-Dec-13

31-Dec-12

Cash

$19,000

$9,000

Accounts Receivable

44,000

35,000

Inventory

55,000

49,000

Preremunerated Rent

6,000

8,000

Long-Term Investments

21,000

34,000

Set nature

150,000

106,000

Accumulated derogation

40,000

32,000

Accounts payable

24,000

20,000

Allowance toll payable

4,000

6,000

Low supply

121,000

92,000

Retained earnings

106,000

91,000

 

M4-29. Classifying Specie Course Announcement Components and Determining Their Effects

The aftercited table presents separated individuals from a late specie course announcement of Nordstroms, Inc

  1. Restraint each individual, enumeblame whether the total would be unconcealed in the specie course announcement below munificent activities, investing activities, or financing activities. (Nordstrom uses the sepablame arrangement of reporting.)
  2. Restraint each individual, enumeblame whether it conciliate answer as a fixed or denying in determining the entangle extension in specie and specie equivalents.

1

Extension in representations receivable

 

2

Capital expenditures

 

3

Proceeds from long-term borrowings

 

4

Extension in bland fullowance toll entangle liability

 

5

Highest payments on long-term borrowings

 

6

Extension in goods inventories

 

7

Reduce in preremunerated prices and other nature

 

8

Proceeds from issuances below supply damages plans

 

9

Extension in representations payable

 

#

Entangle earnings

 

#

Payments restraint discharge of low supply

 

#

Extension in accrued salaries, salary, and retained benefits

 

#

Specie dividends remunerated

 

#

Derogation and amortization prices

 

 

 

E4-39. Analyzing Investing and Financing Specie Courses

During 2013, Paxon Corporation’s long-term investments representation (at absorb) extensiond $15,000, which was the entangle termination of purchasing supplys absorbing $80,000 and selling supplys absorbing $65,000 at a $6,000 mislaying. Also, it bonds payable representation reduced $10,000, the entangle termination of issuing $130,000 of bonds and subordinate bonds with a body esteem of $140,000 at a $9,000 reach. What individuals and totals answer in the (a) specie courses from investing activities and (b) specie courses from financing activities sections of its 2013 announcement of specie courses?

 

 

 

 

C4-59. Interpreting the Announcement of Specie Courses

The announcement of specie courses restraint Daimler AG follows:

 

Daimler AG Consolidated Announcement of Specie Courses

(Millions of Euros)

 

 

Fiscal Year 2011

Profit precedently fullowance tolles

 

 

8,449

Derogation and amortization

 

 

3,575

Other non-specie prices and fullowance

 

 

-122

Gains (-)/ mislayinges on disposals of nature

 

 

-102

Change in munificent nature and liabilities

 

 

 

Inventories

 

 

-2,328

Trade Receivables

 

 

-620

Trade payables

 

 

1,762

Receivables from financial services

 

 

-4,526

Vehicles on munificent leases

 

 

-2,874

other munificent nature and liabilities

 

 

-1,093

Allowance toll remunerated

 

 

-2,817

 

 

 

 

Specie supposing by/(used restraint) munificent activities

 

 

-696

Additions to nature, set and equipment

 

 

-4,158

Additions to invisible nature

 

 

-1,718

Proceeds from disposals of nature, set and equipment and invisible nature

 

 

252

Investments in portion-out nature

 

 

-899

Proceeds from disposals of portion-out nature

 

 

203

Acquisitions of retail score securities

 

 

-5,478

Proceeds from sales of retail score securities

 

 

5,241

Other

 

 

20

 

 

 

 

Specie supposing by/(used restraint) investing activities

 

 

-6,537

Change in short-term financing liabilities

 

 

2,589

Additions to long-term financing liabilities

 

 

26,037

Repayment of long-term financing liabilities

 

 

-20,560

Dividobject remunerated to sharholders of Daimler AG

 

 

-1,971

Dividends remunerated to non-controlling curiosity-behalf

 

 

-278

Proceeds from issuance of portion-out capital

 

 

71

Acquisitiion of garner portion-outs

 

 

-28

Acquisition of non-controlling curiosity-behalf in subsidiaries

 

 

-18

 

 

 

 

Specie provoded by/(used restraint) financing activities

 

 

5,842

Effect of restrainteign change blame changes on specie and specie equivalents

 

 

64

 

 

 

 

Entangle extension/(decrease) in specie and specie equivalents

 

 

-1,327

Specie and specie equivalents at the preface of the period

 

 

10,903

 

 

 

 

Specie and specie equivalents at the object of the period

 

 

9,576

 

 

  1. Daimler begins in specie course announcement with entangle fullowance of € 8,449 darling, then adds € 3,375 darling restraint derogation and amortization. Why is Daimler adding derogation and amortization to entangle fullowance in this reckoning?
  2. Why does Daimler remove €102 darling of reachs on disposals of nature in its sepablame arrangement specie courses from munificent activities? If these reachs are full created by disposals of nature, set and equipment and invisible nature, what was the body esteem of the nature Daimler expeditions of during fiscal year 2011?
  3. Daimler shows a denying €2,328 darling restraint inventories in the announcement of specie courses. Does this balance that Daimler remunerated €2,328 darling restraint inventories in 2011? Explain.
  4. Compute Daimler’s unoccupied specie course restraint 2011. How did the posse finance its investing activities?
  5. Daimler reports a specie outcourse from munificent activities of €696 darling, notwithstanding reporting entangle fullowance of €8,449 darling. What highest activities representation restraint this estrangement? Does this breed concerns encircling the soundness of Daimler AG?
~~~For this or similar assignment papers~~~