Intermediate Accounting Summer II 2019 Answer all questions completely…..Showing ALL work: 1. Tara’s Treasures has the following information at December 31, 2019: Loss on Discontinued Operations...

Intermediate Accounting                    Summer II 2019
Answer all questions completely…..Showing ALL work:
1. Tara’s Treasures has the following information at December 31, 2019:
Loss on Discontinued Operations            $90,000
Retained Earnings Balance 1/1 19            $980,000
Interest Revenue                    $70,000
Sales Revenue                    $15,000,000
Selling & Administrative Expenses            $2,700,000
Write-off/Impairment Goodwill            $520,000
Cost of Goods Sold                    $6,000,000
Loss due to Flood Damage                $390,000 (Non-Recu
ing/Replaces Extraordinary)
Dividends Declared-Common Stock        $250,000
Gail on Sale of Investments                $110,000 (Normal & Recu
ing )
Dividends Declared-Prefe
ed Stock        $80,000
Cost of Goods Sold Overstated in 2018        $20,000
Tara has a normal corporate tax rate of 25%.
Required:
a. Prepare a Multi-Step Income Statement
. Prepare a Statement of Retained Earnings    
2. Gillian’s Gems has provided you with the following Comparative Balance Sheet for Dec 31, 2019 & 2018
2019        2018
        Cash                $63,000    $22,000
        Accounts Receivable        $82,000    $66,000
        Inventory            $180,000    $189,000
        Land                $71,000    $110,000
        Equipment            $270,000    $200,000
        Accum Dep-Equip        ($69,000)    ($42,000)
        Accounts Payable        $34,000    $47,000
        Bonds Payable-10 year    $150,000    $200,000
        Common Stock $1 par    214,000    $164,000
        Retained Earnings        $199,000    $134,000
Additional Information:
1. Net Income for Dec 31, 2019 was $105,000
2. Cash Dividends of $40,000 were declared and paid during 2019
3. Bonds Payable of $50,000 were retired through the issuance of Common Stock
Required:
a. Prepare a Statement of Cash Flows for 2019.
3. Keira’s Kites has decided to expand its operations. The bookkeeper recently completed the balance sheet in order to obtain additional funds for expansion.
Keira Kites Inc
BALANCE SHEET
For Year End DECEMBER 31, 2019
Cu
ent assets
Cash                                         $ 105,000
Accounts receivable (net)                             411,000
Inventories at lower of Cost or Value                    561,000
Available-for-sale securities—at cost (fair value $65,000)             50,000
Property, plant, and equipment Building (net)                 1,561,000
Offi ce equipment (net)                             125,000
Land held for future use                             251,000
Intangible assets Patents                             128,000
Cash su
ender value of life insurance                     26,000
Prepaid expenses                                 39,000
Cu
ent liabilities
Accounts payable                                 367,000
Notes payable (due next month)                         75,000
Pension obligation                                 361,000
Unearned revenue                                 26,000
Premium on bonds payable                             36,000
Long-term liabilities Bonds payable                         1,500,000
Stockholders’ equity
Common stock, $1.00 par, authorized 1,000,000 shares, issued 610,000     610,000
Additional paid-in capital                             200,000
Retained earnings                                 $XX
Instructions
Prepare a revised balance sheet given the available information.
Assume that the accumulated depreciation balance for the buildings is $302,000 and for the office equipment, $86,000.
The allowance for doubtful accounts has a balance of $37,000.
The pension obligation is considered a long-term liability.
4. Stafford Corporation provides you with the following information regarding their ACCOUNTS RECEIVABLE:
Net Credit Sales                    $6,525,000
Balance of Accounts Receivable at year end        $1,600,000
Allowance for Uncollectible Account        $120,000 (credit bal.)
Stafford uses the following % to estimate the Accounts Receivable expected NOT to be collected:
Aging Category        % Estimated to be Uncollectible
Cu
ent                1%
1-30 Days Past Due            5%
31-60 Days Past Due            15%
61-90 Days Past Due            30%
Over 90 Days Past Due        95%
Stafford’s Aged Account Receivable Schedule is as follows:
Customer    Cu
ent XXXXXXXXXX    61-90    Over 90    Totals
A.             $200,000 $400,000                $600,000
B.     $200,000                        $200,000
C.              $100,000 $200,000            $300,000
D.                        $300,000 $200,000    $500,000
Totals: $200,000 $300,000 $600,000 $300,000 $200,000 1,600,000    
Required:
1. Record the JOURNAL Entry to record the ADJUSTMENT for Bad Debt Expense and Allowance for Uncollectible accounts for the year.
2. What is the REALIZABLE Value of Accounts Receivable AFTER the entry is recorded and the Allowance for Uncollectible Accounts is updated?    
    
5. The following information pertains to Keira’s Kite Incorp. Aug 30th 2019:
    
Balance Per Bank                $769
Debit Memo: Bank Service Charge        $24
Balance Per Books-Cash Ledger Balance    $1,243
Outstanding Checks                $87
Deposits in Transit                $547
E
or: Keira recorded a deposit of $890 as only $880
Required:
a. Prepare the Bank Reconciliation for Aug 30, 2019
. Record the Journal entries to ADJUST the Cash Ledge
c. What is the ending balance in the Cash Ledger AFTER the adjustments are recorded?