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Accounting: Ratio, depreciation, Cash flow statement etc.

PLEASE SHOW A DESCRIPTION ON HOW TO DO ALL OF THESE:

Prepare a schedule of cash payments for
partnership liquidation

Prepare journal entries for bond issuance and first interest payment with amortization of discount/premium

Prepare operating section of Statement of Cash Flows using indirect method

Prepare journal entries for transactions under equity method of accounting

Prepare Income Statement including intra-period tax allocation for
irregular items

PLEASE HELP ME UNDERSTAND THESE:
Ch 10 Depreciation terminology
Ch 10 Calculate Depreciation
Ch 11 Calculate interest expense on note
Ch 11 Payroll taxes versus employee withholdings
Ch 12 Advantages/disadvantages of partnerships
Ch 12 Steps in partnership liquidation
Ch 13 Issue stock to acquire non-cash asset
Ch 13 Stock terminology
Ch 14 Journal entry for stock dividend
Ch 14 Calculate Earnings Per Share (EPS)
Ch 15 Bond terminology
Ch 15 Bond terminology
Ch 15 Bond prices versus interest rates
Ch 16 Valuation of short term investments
Ch 16 Methods of accounting for stock investments
Ch 17 Meaning of statement of Cash Flows activities
Ch 17 Classify items into activities
Ch 17 Calculate cash received from customers
Ch 18 Ratio
Ch 18 Extraordinary item

Solution Preview

1. Prepare a schedule of cash payments for partnership liquidation
Example:
Capital
Share 30% 40% 30%
Item Cash Non-cash assets Liabilities Partner 1 Partner 2 Partner 3
Balances before liquidation xxxx xxxx xxxx xxxx xxxx xxxx
Sale of assets and gain/(loss) xxxx xxxx xxxx xxxx xxxx xxxx
New balances xxxx xxxx xxxx xxxx xxxx xxxx
Payment of liabilities (xxxx) (xxxx)
New balances xxxx
Cash distribution xxxx xxxx xxxx

2. Prepare journal entries for bond issuance and first interest payment with amortization of discount/premium
General Journal
Date Description Debit Credit
xx-xx-xxxx Cash xxxx
Bonds payable xxxx
(Being the cash receipts from sale of bonds)
Interest expense xxxx
Discount on bond payable xxxx
Cash xxxx
(Being the amount paid as interest on bond with amortization of discount)
or
Interest expense xxxx
Premium on bond xxxx
Cash xxxx
(Being the amount paid as interest on bond with amortization of premium)

3. Prepare operating section of Statement of Cash Flows using indirect method
Statement of cash flow (Indirect method)
Cash flow from operating activities
Net income xxxx
Add:
Depreciation xxxx
Decrease in inventories xxxx
Increase in accrued inventories xxxx
Loss on sale of land xxxx
xxxx

Less:
Increase in accounts receivable xxxx
Decrease in accounts payable xxxx
Decrease in income taxes payable xxxx
Gain on sale of land xxxx
Net cash flow from operating activities xxxx

4. Prepare journal entries for transactions under equity method of accounting

The equity method is an accounting technique which an investment is recorded at its initial cost. However, the cost is adjusted for any gains or losses in value subsequent to the purchase. For example, assume company S paid $100,000 for more than 50% ownership in firm Z, the necessary transactions would include:
Example:
General Journal
Date Description Debit Credit
xx-xx-xxxx Investment in Company Z 100,000
Cash 100,000
(Being the amount invested for 50% stock of company Z)
Investment in Company Z 10,000
Investment income 10,000
(Being the recognition of share of $20,000 income of Company Z)

5. Prepare Income Statement including intra-period tax allocation for irregular items
Income statement
Revenue xxxx
Less: Cost of service (xxxx)
Gross profit xxxx

Less: Expenses
Rent xxxx
Administration xxxx
Telephone xxxx
Insurance (less prepayment or add accurals) xxxx
Total expenses (xxxx)

Earnings before interest and tax xxxx
Interest xxxx
xxxx
Tax (xxxx)
Earnings after interest and tax xxxx

Earnings after interest and tax xxxx
Less: Dividends xxxx
Retained earnings xxxx

6. Depreciation terminology

Depreciation is an accounting technique which apportions costs, of an asset, over a given period of time. There are three major terms in depreciation:
1. Salvage amount: The amount that an asset would be worth after its useful ...

Solution Summary

The problem deals with topics under accounting: Cash flow statement, calculation of depreciation etc.

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