Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the management team at Booster Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per APA style and have proper citations, where applicable.Booster Company is preparing its financial statements for the year ended June 30, 2018. The financial statements are complete except for the statement of cash flows. You have been asked to prepare a statement of cash flows for the year ended June 30, 2017.Download the Excel spreadsheet Booster Company A1.Required:Prepare a spreadsheet to support a statement of cash flows for the year ended June 30, 2018.In the Excel Worksheet column named ‘Worksheet Entries’, show under Debit and Credit, the amounts that would be used in preparation of the statement of cash flows.Prepare the Booster Company’s statement of cash flows for the year ended June 30, 2018. Prepare the statement of cash flows using the indirect method. Note: For full credit, you must prepare the statement of cash flow in good form with all necessary disclosures, including disclosures about non-cash financing and investing activities.
act360_booster_company_a1_portfolio.xlsx
act360_ct_4_exceltemplate_lease.xlsx
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Last Name, First Name
Portfolio Project
You are the accountant for Booster Construction Company, a large construction company in Colora
financial information for Booster and asked to prepare the Statement of Cash Flows for the year en
the project in this excel file, which includes the following tabs:
1. Facts – Information taken from Booster’s accounting records and additional information regardin
2. Worksheet – Worksheet template (also see Example in chap 21 of textbook).
3. Cash Flows – Statement of Cash Flows template (also see Example in chap 21 of textbook).
Debits
Cash
Accounts Receivable
Marketable Securities (at cost)
Allowance for Change in Value
Construction in Process
Prepaid Expenses
Investments (long-term)
Leased Equipment
Building
Deferred tax asset
Land
Discount on Bonds Payable
Totals
Credits
Allowance for doubtful accounts
Accounts Payable
Deferred tax liability
Income Taxes Payable
Note Payable (long-term)
Accumulated Depreciation on Building
Accumulated Depreciation on Leased Asset
Lease obligation
Interest payable on lease obligation
Interest payable (Bonds)
Bonds payable
Billings on contruction in process
Pension liability
Convertible preferred stock, $100 par
Common Stock, $10 par
Additional Paid-in Capital
Unrealized Increase in Value of Marketable Securities
Retained Earnings
Totals
Additional information:
a. Dividends declared and paid totaled $650.
b. 300 shares of common stock (at par) were issued for cash.
c. On July 1, 2017, convertible preferred stock that had originally been issued at par value
converted into 500 shares of common stock. The book value method was used to accoun
conversion.
d. The long-term note payable was paid by issuing 250 shares of common stock at the be
fiscal year.
e. Short-term marketable securities were purchased at a cost of $1,300. The portfolio wa
$300 to a $14,800 fair value at year-end by adjusting the related allowance account.
f. During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,5
reported $20,000 in net income for the year and paid dividends of $2,000 to Smart.
g. $5,000 of accounts receivable were written off as uncollectible during the year.
h. Booster’s inventory consists of Construction-in-Process in excess of the Billings on
Construction-in-Process account balance.
i. A building was destroyed by fire during the year and insurance proceeds of $26,000 we
j. The 12% bonds payable were issued on February 28, 2018, at 97. They mature on Febru
The company uses the straight-line method to amortize bond premiums and discounts.
k. Booster recorded pension expense of $350,000 for the year.
l. A lease agreement was signed on July 1st, 2017 for the use of equipment worth $20,00
company determined that the transaction should be recorded as a capital lease.
nstruction company in Colorado. You have been presented with the following
of Cash Flows for the year ended June 30, 2018. You will complete all work for
dditional information regarding the cash flows as of June 30, 2018.
extbook).
n chap 21 of textbook).
Account Balances
June 30, 2017 June 30, 2018
$
361,700 $
100,000
11,700
1,500
168,750
45,000
30,000
5,375
10,500
734,525
880,550
125,000
13,000
1,800
405,000
10,000
13,500
20,000
2,200
10,500
1,305
1,482,855
$
6,000 $
87,500
1,000
4,500
210,000
3,300
3,500
3,500
2,500
150,000
150,000
9,000
14,000
8,700
1,500
297,325
734,525
nally been issued at par value were
method was used to account for the
s of common stock at the beginning of the
t of $1,300. The portfolio was increased by
ated allowance account.
sed as an investment for $9,500. Ricochet
nds of $2,000 to Smart.
9,000
3,000
18,000
1,800
1,800
45,000
325,000
400,000
24,500
13,700
1,800
421,455
1,482,855
ctible during the year.
excess of the Billings on
ance proceeds of $26,000 were collected.
at 97. They mature on February 28, 2028.
d premiums and discounts.
e of equipment worth $20,000. The
ed as a capital lease.
e following
all work for
–
BOOSTER CONSTRUCTION COMPANY
Cash Flows Worksheet
For Year Ended June 30, 2018
Account Titles
Debits
Noncash Accounts:
Credits
Balances
6/30/2017
6/30/2018
Cash Flows from Operating Activities:
Cash Flows from Investing Activities:
Cash Flows from Financing Activities
Investing and Financing Activities Not Affecting Cash:
Net Increase in Cash
Totals
ON COMPANY
ksheet
e 30, 2018
Change
Increase (Decrease)
Worksheet Entries
Debit
Credit
Booster Construction Company
Statement of Cash Flows
For Year Ended June 30, 2018
Operating Activities:
Net Income
Adjustments for noncash income items:
Adjustments from cash flow effect from working capital items:
Net cash provided (used) by operating activities
Investing activities:
Net cash provided (used) by investing activities
Financing Activities:
Net cash provided (used) by financing activities
Net increase in cash (see Schedule 1)
Cash, June 30, 2017
Cash, June 30, 2018
Schedule 1: Investing and Financing Activities Not Affecting Cash
Module Number:
Name of Company:
Option:
Student’s Name:
Prepare the journal entries to record transactions as required.
Lessee:
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
** You may add additional rows as needed.
Lessor:
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a one-line explanation for the reason why the journal entry has been made.
Date
Account Title
Account Title
Amount
Amount
Provide a-one line explanation for the reason why the journal entry has been made.
Module Number:
Name of Company:
Option:
Student’s Name:
Date
Initial Lease amount
Interest Income
Principal
Carrying Amount of Lease
Module Number: 4
Name of Company:
Option:
Date
Initial Lease Amount
Student’s Name:
Interest
Principal
Carrying Amount of Lease
…
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