Cypress Corp. went into business on October 1, 2020. Cypress had the following transactions during 2020: • Oct. 1 - Issued a total of 20 shares of stock to two stockholders for a total of $6,000. Oct. 1 - Borrowed $20,000 from the bank. No payments will be made on this loan until October 1, 2022, when $24,000 will be due. • Oct. 12 - Purchased land for $8,000 in cash. • Nov. 1 - Purchased equipment for $12,000 in cash. The equipment is expected to last for four years with no salvage value. Nov. 15 - Purchased $5,000 inventory, half in cash and half on account. Dec. 1 - Purchased six months of insurance for $1,200. • Dec. 10 - Sold $2,000 of inventory for $4,500 in cash. Dec. 12 - Sold one-half of land for $5,000 in cash. Dec. 13 - Paid balance owed on accounts payable. • Dec. 18 - Sold $1,500 of inventory for $2,500 on account. Dec. 31 - Paid $1,000 in dividends. What were the net operating cash flows for Cypress during 2020? $3,300 $800 O ($600) O ($1,700) O None of the above

Cypress Corp. went into business on October 1, 2020. Cypress had the following transactions during 2020: • Oct. 1 - Issued a total of 20 shares of stock to two stockholders for a total of $6,000. Oct. 1 - Borrowed $20,000 from the bank. No payments will be made on this loan until October 1, 2022, when $24,000 will be due. • Oct. 12 - Purchased land for $8,000 in cash. • Nov. 1 - Purchased equipment for $12,000 in cash. The equipment is expected to last for four years with no salvage value. Nov. 15 - Purchased $5,000 inventory, half in cash and half on account. Dec. 1 - Purchased six months of insurance for $1,200. • Dec. 10 - Sold $2,000 of inventory for $4,500 in cash. Dec. 12 - Sold one-half of land for $5,000 in cash. Dec. 13 - Paid balance owed on accounts payable. • Dec. 18 - Sold $1,500 of inventory for $2,500 on account. Dec. 31 - Paid $1,000 in dividends. What were the net operating cash flows for Cypress during 2020? $3,300 $800 O ($600) O ($1,700) O None of the above

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 29E

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Cypress Corp. went into business on October 1, 2020. Following are some of Cypress's transactions during October, November, and December, 2020: • Oct. 1 - Issued a total of 20 shares of stock to two stockholders for a total of $6,000. Oct. 1- Borrowed $20,000 from the bank. No payments will be made on this loan until October 1, 2022, when $24,000 will be due. • Oct. 12 - Purchased land for $8,000 in cash. • Nov. 1 - Purchased equipment for $12,000 in cash. The equipment is expected to last for four years with no salvage value. • Dec. 12 - Sold one-half of land for $5,000 in cash. What are Cypress's net investing cash flows for Cypress during 2020? ($14,000) O ($15,000) ($20,000) ($3,000) None of the above
On January 1, 2021, the Apex Company exchanged some shares of common stock it had been holding as an investment for a note receivable. The note principal plus interest is due on January 1, 2022. The 2021 income statement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. The stock’s book value was $16,000. The company’s fiscal year ends on December 31.Required:1. What is the note’s effective interest rate?2. Reconstruct the journal entries to record the sale of the stock on January 1, 2021, and the adjusting entry to record interest revenue at the end of 2021. The company records adjusting entries only at year-end.
Cypress Corp. went into business on October 1, 2020. Following are some of Cypress's transactions during October, November, and December, 2020: • Oct. 1- Borrowed $20,000 from the bank. No payments will be made on this loan until October 1, 2022, when $24,000 will be due. Nov. 15 - Purchased $5,000 inventory, half in cash and half on account. Dec. 13 - Paid balance owed on accounts payable. Dec. 18 - Sold $1,500 of inventory for $2,500 on account. Dec. 31 - Paid $1,000 in dividends. What were Cypress's current liabilities at December 31, 2020? $2,500 $500 O $3,000 $0 O None of the above
In January 2022, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Purchased 600 shares of Muninger common stock for $30,000. Mar. 1 Purchased 800 shares of Tatman common stock for $20,000. Apr. 1 Purchased 60 of $1,160,7% Yoakem bonds for $69,600. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.70 per share on the Muninger common stock. Aug. 1 Sold 200 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $67,900. At December 31, the fair value of the Muninger and Tatman common stocks were $51 and $24 per share respectively. These stock investments by Sheridan Company provide less than a 20% ownership interest.
On January 1, 2018, the Apex Company exchanged some shares of common stock it had been holding as aninvestment for a note receivable. The note principal plus interest is due on January 1, 2019. The 2018 incomestatement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. Thestock’s book value was $16,000. The company’s fiscal year ends on December 31.Required:1. What is the note’s effective interest rate?2. Reconstruct the journal entries to record the sale of the stock on January 1, 2018, and the adjusting entry torecord interest revenue at the end of 2018. The company records adjusting entries only at year-end
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Southeast Bank invests in equity securities and prepares quarterly financial statements. At the beginning of the fourth quarter of 2019, the bank held as an investment in equity securities 220 shares of Eglan Company common stock that originally cost $5,940. At that time, these securities had a fair value of $5,720. During the fourth quarter, the bank engaged in the following transactions: Oct. 26 Purchased 340 shares of Farrell Company common stock for $34 per share. Nov. 26 Sold 220 shares of Eglan common stock for $25 per share. Dec. 10 Purchased 390 shares of Gray Company common stock for $43 per share. On December 31, 2019, the quoted market prices of the shares were as follows: Eglan Company, $56 per share; Farrell Company, $38 per share; and Gray Company, $42 per share. Required: 1. Prepare journal entries to record the preceding information for the fourth quarter. 2. Show what the bank reports on its fourth quarter 2019 income statement for these equity…
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On December 1, 2024, Loki's Restaurant decides to invest excess cash of $56,000 from the tourist season by purchasing a Robin, Inc. bond at face value. At year-end, December 31, 2024, Robin's bond had a market value of $52,800. The investment is categorized as an available-for-sale debt investment and will be held for the short-term. Read the requirements. Requirement 1. Journalize the transactions for Loki's investment in Robin, Inc. for 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Begin by journalizing Loki's investment in the Robin, Inc., bond on December 1, 2024. Date Accounts and Explanation Dec. 1 Debit C Credit Requirements 1. Journalize the transactions for Loki's investment in Robin, Inc. for 2024. 2. In what category and at what value would Loki report the asset on…
The following transactions apply to Hooper Co. for 2018, its first year of operations: Issued $60,000 of common stock for cash. Provided $90,000 of services on account. Collected $78,000 cash from accounts receivable. Loaned $20,000 to Mosby Co. on November 30, 2018. The note had a one-year term to maturity and a 6 percent interest rate. Paid $26,000 of salaries expense for the year. Paid a $2,000 dividend to the stockholders. Recorded the accrued interest on December 31, 2018 (see item 4). Estimated that 1 percent of service revenue will be uncollectible Prepare the income statement, balance sheet, and statement of cash flows for 2018.
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