Homework Assignments Accounting due in 5 hours

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AdvanceAccountIIFinalProjectOption2.xlsx
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Information

ACT506
Portfolio Project Option#2
Push Corporation and Subsidiaries
Consolidated Statement of Cash Flows
For the Year Ended December 31, 20x7
(Indirect Method)
Additional Information
Information for Cash Flow Statement completion
A. Push Corporation has 100% control of Summer Corporation on 01/02/20x7.
Push Consolidated Income Statement B. Push Corporation has $195,000 Consolidated Income for 20x7.
12/31/20x7 12/31/20x7 C. Push Corporation pays a $10,000 Dividend to stockholders.
D. Summer Corporation reports income of $100,000 and pays Dividend of $50,000 in 20x7.
Revenue 950,000 E. Push Corporation sells land that it purchased in 20X1 for $50,000 to nonaffiliated for $100,000.
Gain on Sale of Land 50,000 F. Summer Corporation purchases additional equipment for 200,000 at end of 20x7.
Loss on Sale of Equipment -5,000 G. Parent, Push Corporation purchases Additional Equipment for $150,000 on June 01, 20x7.
Cost of Goods Sold 500,000 H. Common Stock of $10.00 par was issued with 10,000 shares for $100,000 value on Mar, 01 20x7.
Depreciation Expense 100,000 I. Long Term Bonds were retired at fair market value with cash on Jan 15, 20x7, $150,000.
Other Expenses 200,000 K. Equipment with a book value of $25,000 was sold for $20,000, a loss of $5,000.
Total expenses 800,000
Consolidated Income 195,000
Parent's Equity income from Subsidiary 100,000
Subsidiary Net Income 20x6 -100,000
Consolidated Net Income 195,000
B. Retained Earnings Statement
Parent's beginning R.E from operations
Parent's Income from operations
Parent's Dividend to stockholders
Consolidated Retained Earnings
Push Corporation Balance Sheet
Dates 12/31/20x6
Cash 150,000
Acct Rec 200,000
Inventories 150,000
Land 25,000
Land 100,000
Buildings and Equipment 500,000
Goodwill 100,000
Total Debits 1,225,000
Acc Depreciation 200,000
Accts Payable 50,000
Bonds Payable 150,000
Common Stock 200,000
Paid in Capital 125,000
Retained Earnings 500,000
1,225,000

Worksheet

A. Push Corporation has 100% control of Summer Corporation on 01/02/20x7.
B. Push Corporation has $195,000 Consolidated Income for 20x7.
C. Push Corporation pays a $10,000 Dividend to stockholders.
D. Summer Corporation reports income of $100,000 and pays Dividend of $50,000 in 20x7.
E. Push Corporation sells land that it purchased in 20x7 for $50,000 to nonaffiliated for $100,000.
Debit Credit F. Push Corporation purchases additional equipment for 200,000 at the end of 20x7.
Push Corporation Balance Sheet G. Parent, Push Corporation purchases Additional Equipment for $150,000 on June 01, 20x7.
Dates 12/31/20x6 12/31/20x7 H. Common Stock of $10.00 par was issued with 10,000 shares for $100,000 value on Mar, 01 20x7.
Cash 150,000 140,000 10,000 I. Long Term Bonds were retired at fair market value with cash on Jan 15, 20x7, $150,000.
Acct Rec 200,000 100,000 300,000 K. Equipment with a book value of $25,000 was sold for $20,000, a loss of $5,000.
Inventories 150,000 100,000 250,000 L. Increase in Cash and Increase or decrease in cash balance. Done after all entries performed.
Land 25,000 25,000 0 M. Account Receivable increased $100,000.
Land 100,000 50,000 50,000 N. Inventory increased $100,000.
Buildings and Equipment 500,000 350,000 850,000 O. Increase in Accts Payable $100,000.
Good =will 100,000 100,000 P. Accumulated Depreciation increased $100,000.
Q. Goodwill did not change in year.
Total Debits 1,225,000 1,560,000 R. Paid In Capital did not change in year.
Entries to Perform:
Accounts Depreciation 200,000 100,000 300,000
Accts Payable 50,000 100,000 150,000 A No entry required for cash flow statement. Assumption is $100,000 Goodwill is after Eliminating Entry for Consolidation.
Bonds Payable 150,000 150,000 0
Common Stock 200,000 100,000 300,000
Paid in Capital 125,000 125,000 B Consolidated Income on
Retained Earnings 500,000 10,000 195,000 685,000 Retained Earnings
1,225,000 1,560,000 C. R.E
Dividend
Cash Flows form Operating Activities D No entry required for cash flow statement. In Consolidation process, intercompany transactions are removed.
Consolidated Income 195,000
Depreciation Expense 100,000
Gain on Sale of Land 50,000 E. Increase in Cash Land
Loss on Sale of Land 5,000
Increase in Acct Receivable 100,000 Gain on Sale of land
Income in Inventory 100,000 Land
Income in Accts payable 100,000
Cash Flows from Investing Activities F Additional Equipment
Acquisition of Equipment 150,000
Acquisition of Equipment 200,000 Acquisition of Equipment
Sale of Land 100,000
Sale of Land (loss) 20,000 G. Additional Equipment
Cash Flows from Financing Activities Acquisition of Equipment
Dividends paid to Stockholders 10,000
Payment of Bond Payable 150,000
Common Stock 100,000
1,330,000 1,470,000 H. Increase in cash flow financing
Decrease in Cash 140,000 Common Stock
I. Long Term Bonds
Increase in financing retirement
K. Increase in financing
Loss on sale of Equipment
Equipment
L. Cash at end of cash flow process calculation
Increase in cash
M Increase in Acct Rec
Acct Rec
N. Increase in Investment
increase in inventory
O. Increase in Accts payable
Accounts Payable

Cash Flow Statement

Push Corporation and Subsidaries
Consolidated Statement of Cash Flows
For the Year Ended December 31, 20x7
(Indirect Method)
Cash Flows from Operating Activities
Consolidated Net Income
Noncash expenses, revenues,losses and gains included in income:
Depreciation
Gain on sale of Land
Loss on sale of land
Changes in Operating Assets and Liabilities
Increase in Acct Recievable
Increase in Inventory
increase in accts payable
Net Cash provided by Operating Activities
Cash Flows from Investing Activities
Acquistion of Equipment
Sale of Land
Sale of Land B.
Net Cash used in Investing Activities
Cash Flows from Financing Activities
Dividends Paid
Cash paid for Bond Retirement
Cash received for Stock Issuance
Net Cash used in Financing Activities
Net Increase in Cash
Cash at the beginning of the Year
Cash at the end of the Year