BA225 Managerial Accounting: Module 7 Assignment (Conard Corp. and Scully Corporation)

BA225 Managerial Accounting
Module 7 Assignment

Problem 1
An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Conard Corp. uncovered the following items.

Assume all items involve cash unless there is information to the contrary. Indicate how each item should be classified in the statement of cash flows using the four major classifications listed to the right.

ITEMS
a. Payment of interest on notes payable
b. Exchange of land for patent
c. Sale of building at book value
d. Payment of dividends
e. Depreciation
f. Receipt of dividends on investment in stock
g. Receipt of interest on notes receivable
h. Issuance of capital stock
i. Amortization of patent
j. Issuance of bonds for land
k. Purchase of land
l. Conversion of bonds into common stock
m. Loss on sale of land
n. Retirement of bonds

NOTE: You will associate each item to the appropriate number (representing classification) using the center column.

Problem 2
Scully Corporation’s comparative balance sheets are presented below.

SCULLY CORPORATION

Balance Sheets
December 31
2011 2010
Cash 4,300 3,700
Accounts receivable 21,200 23,400
Inventory 10,000 7,000
Land 20,000 26,000
Building 70,000 70,000
Accumulated depreciation (15,000) (10,000)
Total 110,500 120,100

Accounts payable 12,370 31,100
Common stock 75,000 69,000
Retained earnings 23,130 20,000
Total 110,500 120,100

Scully’s 2011 income statement included net sales of $100,000, cost of goods sold $60,000, and net income of $15,000.

Show computation (equation) for the following:
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