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(TCO C) Presented below is information related to Big Blast Company.

1. (TCO C) Presented below is information related to Big Blast Company. Retained earnings, December 31, 2010- $ 2,350,000240,000250,000Cash dividends declared on common stock 53,6001,000,000Gain resulting from computation error on depreciation charge in 2009 (pre-tax) 520,00080,00050,000Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 100,000 shares of common stock were outstanding during the year.2. The following balance sheet was prepared by the bookkeeper for Brown Company as of December 31, 2011. Brown CompanyBalance SheetAs of December 31, 2011$75,000100,000Stockholders Equ. 218,500$393,500Equipment (net)96,000 32,000$393,500The following additional information is provided:(1) Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted.(2) The net accounts receivable balance includes:(a) accounts receivable debit balances $60,000;(b) accounts receivable credit balances $4,000;(c) allowance for doubtful accounts $3,800.(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.(4) Investments include investments in common stock, trading $24,000 and available-for-sale $48,300, and franchises $4,000.(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.Prepare a balance sheet in good form (stockholders' equity details can be omitted.)Do not worry about balancing the statement but rather use your time to compute the account balances properly for presentation purposes.A machine cost $500,000 on April 1, 2010. Its estimated salvage value is $50,000 and its expected life is eight years.Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used.(a) Straight-line for 2010(b) Double-declining balance for 2011(c) Sum-of-the-years'-digits for 20114. Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $3,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors: 11 PeriodsFuture Value 2.33164Present Value.42888Future Valueof Ordinary16.64549Present Valueof Ordinary7.13896Present Valueof Annuity7.71008(a) Assuming the computer has an eleven-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John? (b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?5. Northville Paper and Paint deposits all receipts and makes all payments by check. The following information is available from the cash records: Month of May ResultsPer Books$24,35512,88916,080May note collected(not included in00May NSF check of a customer returned by thebank (recorded by bank0Calculate the following amounts:1. Deposits in transit on May 31.2. Outstanding checks on May 31.6. Rye Company was formed on December 1, 2010. The following information is available from Rye's inventory record for Product Bread. Unit CostJan. 1, 2011$17.00Purchases:$20.00$21.00$22.00$25.00A physical inventory on March 31, 2011, shows 3,000 units on hand.Prepare schedules to compute the ending inventory at March 31, 2011, under each of the following inventory methods:(a) FIFO.(b) LIFO.(c) Weighted-average.Show supporting computations in good form.

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