Learning Team Assignment: Los Lobos Ledger Preparation
- Review the following information:
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12-31
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2007
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2006
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Cash
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$ 35,000
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$ 32,000
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Accounts receivable
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33,000
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30,000
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Allowance for doubtful accounts
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(1,300)
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(1,100)
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Inventory
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31,000
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47,000
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Property, plant, & equipment
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100,000
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95,000
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Accumulated depreciation
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(16,500)
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(15,000)
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Trade accounts payable
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(25,000)
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(15,500)
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Income taxes payable
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(21,000)
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(29,100)
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Deferred income taxes
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(5,300)
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(4,600)
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8% callable bonds payable
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(45,000)
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(20,000)
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Unamortized bond discount
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4,500
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5,000
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Common stock
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(50,000)
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(40,000)
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Additional paid-in capital
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(9,100)
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(7,500)
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Retained earnings
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(25,200)
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(64,600)
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Sales
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(558,300)
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(778,700)
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Cost of goods sold
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250,000
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380,000
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Selling expenses
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141,500
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172,000
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General and administrative expenses
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137,000
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151,300
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Interest expense
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4,300
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2,600
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Income tax expense
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20,400
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61,200
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$-
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$-
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Additional information:
1. Los Lobos purchased $5,000 in equipment during 2007.
2. Los Lobos allocated one-third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3. Bad debt expense for 2007 was $5,000, and write-offs of uncollectible accounts totaled $4,800.
4. $12, 000 of the debt is current portion.
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Cash Sales
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$72,600
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Collections on Receivables
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477,900
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Purchases
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(219,500)
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Purchase of Equipment
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(5,000)
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Wages
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(150,700)
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Payments to Suppliers
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(126,300)
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Tax Payments
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(27,800)
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Borrowing
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30,000
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Repayment of Debt
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(5,000)
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Interest Payments
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(3,800)
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Sale of Stock
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11,600
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Dividends
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(51,000)
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- Prepare a statement of cash flows using the direct and indirect methods for 07.
- Prepare a classified balance sheet for 07.