ACCOUNTING Problem Los Lobos Case Study 87101
Advanced Tutor1.
Los Lobos Ledger Preparation
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Review the following information:
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| 12-31-2007 | 12-31-2006 |
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Cash | $ 35,000 | $ 32,000 |
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Accounts receivable | 33,000 | 30,000 |
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Allowance for doubtful accounts | (1,300) | (1,100) |
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Inventory | 31,000 | 47,000 |
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Property, plant, & equipment | 100,000 | 95,000 |
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Accumulated depreciation | (16,500) | (15,000) |
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Trade accounts payable | (25,000) | (15,500) |
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Income taxes payable | (21,000) | (29,100) |
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Deferred income taxes | (5,300) | (4,600) |
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8% callable bonds payable | (45,000) | (20,000) |
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Unamortized bond discount | 4,500 | 5,000 |
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Common stock | (50,000) | (40,000) |
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Additional paid-in capital | (9,100) | (7,500) |
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Retained earnings | (25,200) | (64,600) |
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Sales | (558,300) | (778,700) |
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Cost of goods sold | 250,000 | 380,000 |
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Selling expenses | 141,500 | 172,000 |
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General and administrative expenses | 137,000 | 151,300 |
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Interest expense | 4,300 | 2,600 |
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Income tax expense | 20,400 | 61,200 |
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| $ - | $ - |
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Additional information: |
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1. Los Lobos purchased $5,000 in equipment during 2007. | ||||
2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses. | ||||
3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts totaled $4,800. | ||||
4. $12,000 of the debt is current portion. | ||||
Cash Sales | $72,600 |
Collections on Receivables | 477,900 |
Purchases | (219,500) |
Purchase of Equipment | (5,000) |
Wages | (150,700) |
Payments to Suppliers | (126,300) |
Tax Payments | (27,800) |
Borrowing | 30,000 |
Repayment of Debt | (5,000) |
Interest Payments | (3,800) |
Sale of Stock | 11,600 |
Dividends | (51,000) |
·
Prepare a statement of cash flows using the direct and indirect methods.
·
Prepare a classified balance sheet.
- 8 years ago