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Accounting Chapter 21 Homework Bond interest expense Discount on bonds payable

Page Count
14 pages
Word Count
2071 words
Book Title
INTERMEDIATE ACCOUNTING WITH AIR FRANCE-KLM 2013 ANNUAL REPORT 8th Edition
Authors
David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Exercise 217
Bond
interest Bond interest Unamortized Cash paid
Situation expense payable discount for interest
increase increase
(decrease) (decrease)
1 10 0 0 10
1. Summary Entry Bond interest expense 10
2122 Intermediate Accounting, 8/e
Exercise 217 (concluded)
Bond
interest Bond interest Unamortized Cash paid
Situation expense payable discount for interest
increase increase
(decrease) (decrease)
5. Summary Entry Bond interest expense 10
6 10 (2) (3) 9
6. Summary Entry Bond interest expense 10
Exercise 218
Bond
interest Bond interest Unamortized Cash paid
Situation expense payable discount for interest
1. Summary Entry Bond interest expense 20
2 20 4 0 16
2. Summary Entry Bond interest expense 20
3. Summary Entry Bond interest expense 20
4 20 (4) (6) 18
4. Summary Entry Bond interest expense 20
Exercise 219
Income Deferred
tax Income tax tax Cash paid
Situation expense payable liability for taxes
increase increase
(decrease) (decrease)
1 10 0 0 10
1. Summary Entry Income tax expense 10
2. Summary Entry Income tax expense 10
3. Summary Entry Income tax expense 10
4. Summary Entry Income tax expense 10
5. Summary Entry Income tax expense 10
Exercise 219 (concluded)
Income Deferred
6. Summary Entry Income tax expense 10
Income tax payable 3
8 10 (3) (2) 15
8. Summary Entry Income tax expense 10
9 10 (3) 2 11
9. Summary Entry Income tax expense 10
2126 Intermediate Accounting, 8/e
Exercise 2110
Income Deferred
tax Income tax tax Cash paid
Situation expense payable liability for taxes
increase (decrease) increase (decrease)
1 10 0 0 10
1. Summary Entry Income tax expense 10
2. Summary Entry Income tax expense 10
3. Summary Entry Income tax expense 10
4. Summary Entry Income tax expense 10
Income tax payable 3
Exercise 2111
Most would report the cash inflow of $566,589,440 from the sale of the bonds as a
cash inflow from financing activities in its statement of cash flows.
The $64,000,000 cash interest paid ($32,000,000* + 32,000,000**) is a cash outflow
Exercise 2112
National would report the cash inflow of $4 million from the borrowing as a cash
inflow from financing activities in its statement of cash flows.
Exercise 2113
Requirement 1
Cash Flows from Investing Activities:
Proceeds from sale of land $ 12
2130 Intermediate Accounting, 8/e
Exercise 2114
Requirement 1
Cash Flows from Investing Activities:
Proceeds from sale of equipment $ 8
Exercise 2115
Wilson would report the $3,000,000* investment in the commercial food
processor and its financing with a capital lease as a significant noncash
investing and financing activity in the disclosure notes to the financial
Exercise 2115 (concluded)
Calculations:
September 30, 2016*
Leased equipment (calculated below) ..................... 3,000,000
Lease payable (calculated below) ....................... 3,000,000
Exercise 2116
Investing Activities:
Beilich would report the $600 million investment as a cash outflow among investing
2134 Intermediate Accounting, 8/e
Exercise 2117
RECONCILIATION OF NET INCOME TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Net income $50,000
Adjustments for noncash effects:
Depreciation expense 7,000
Exercise 2118
($ in millions)
Net income closed to retained earnings
Income summary .................................................................................... 75
Cash dividend
Retained earnings (given) .................................................... 25
Stock dividend
Retained earnings (given) .................................................... 16
Property dividend
Retained earnings (given) .................................................... 12
Exercise 2118 (concluded)
Sale of treasury shares
Exercise 2119
Income Statement
Sales $600a
Cost of goods sold 360b
Salaries expense 78c
a Summary Entry Cash (received from customers) 612
b Summary Entry Cost of goods sold 360
c Summary Entry Salaries expense 78
d Summary Entry Insurance expense 42
2138 Intermediate Accounting, 8/e
Exercise 2120
RECONCILIATION OF NET INCOME TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 26
Adjustments for noncash effects:
Depreciation expense 11
Changes in operating assets and liabilities:
Increase in accounts receivable (54)
Exercise 2121
Requirement 1:
a. Summary Entry Cash (received from customers) 311
Accounts receivable 6
Sales revenue 305
Requirement 2:
Cash Flows from Operating Activities:
Cash received from customers $311
2140 Intermediate Accounting, 8/e
Exercise 2122
RECONCILIATION OF NET INCOME TO
NET CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (5,000)
Adjustments for noncash effects:

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