Provide a possible explanation as to why Terrier decided to issue additional bonds for cash during 2017

Refer to all of the facts in Problem 12-9. Problem 12-9. The balance sheet of Terrier Company at the end of 2016 is presented here, along with certain other information for 2017: ……………………………………………………..December 31, 2016 Cash …………………………………………………………..$ 140,000 Accounts receivable …………………………………………….155,000 Total current assets ………………………………………….$ 295,000 Land ………………………………………………………….$ 300,000 Plant and equipment ……………………………………………500,000 Accumulated depreciation …………………………………….(150,000) Investments …………………………………………………….100,000 Total long-term assets ………………………………………$ 750,000 Total assets ……………………………………………….$1,045,000 Current liabilities …………………………………………….$ 205,000 Bonds payable ……………………………………………….$ 300,000 Common stock ……………………………………………….$ 400,000 Retained earnings ………………………………………………140,000 Total stockholders’ equity …………………………………$ 540,000 Total liabilities and stockholders’ equity ……………….$1,045,000 Other information is as follows: a. Net income for 2017 was $70,000. b. Included in operating expenses was $20,000 in depreciation. c. Cash dividends of $25,000 were declared and paid. d. An additional $150,000 of bonds was issued for cash. e. Common stock of $50,000 was purchased for cash and retired. f. Cash purchases of plant and equipment during the year were $200,000. g. An additional $100,000 of bonds was issued in exchange for land. h. During the year, sales exceeded cash collections on account by $10,000. All sales are on account. i. The amount of current liabilities remained unchanged during the year. Required 1. Prepare a balance sheet at December 31, 2017. 2. Using the format in the chapter’s appendix, prepare a statement of cash flows work sheet. 3. Prepare a statement of cash flows for 2017 using the indirect method in the Operating Activities section. 4. Provide a possible explanation as to why Terrier decided to issue additional bonds for cash during 2017. View Solution:
Refer to all of the facts in Problem 12 9 Problem 12 9 The

What Students Are Saying About Us

.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐
"Honestly, I was afraid to send my paper to you, but you proved you are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"

.......... Customer ID: 11***| Rating: ⭐⭐⭐⭐⭐
"This company is the best there is. They saved me so many times, I cannot even keep count. Now I recommend it to all my friends, and none of them have complained about it. The writers here are excellent."

"Order a custom Paper on Similar Assignment at essayfount.com! No Plagiarism! Enjoy 20% Discount!"