The following post-closing trial balance was drawn from the accounts of Spruce T
ID: 2364555 • Letter: T
Question
The following post-closing trial balance was drawn from the accounts of Spruce Timber Co. as of December 31, 2012.
Debit Credit
Cash $6,000
Accounts receivable 18,000
Allowance for doubtful accounts $2,000
Inventory 24,000
Accounts Payable 9,200
Common stock 20,000
Retained earnings 16,800
Totals $48,000 $48,000
Transactions for 2013
1. Acquired an additional $10,000 cash from the issue of common stock
2. Purchased $60,000 of inventory on account
3. Sold inventory that cost $62,000 for $95,000. Sales were made on account
4. Wrote off $1,100 of uncollectible accounts
5. On September 1, Spruce loaned $9,000 to Pine Co. The note had a 7% interest rate and a one year term.
6. Paid $15, 800 cash for salaries expense
7. Collected $80,000 cash from accounts receivable
8. Paid $52,000 cash on accounts payable
9. Paid a $5,000 cash dividend to teh stockholders
10. Estimated uncollectible accounts expense to be 1% of sales on account
11. Recorded teh accrued interest at December 31, 2013
a. Organize the transaction data in accounts under on accounting equation
b. Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for 2013
what is the answer for 'a' and 'b'?
Explanation / Answer
Three Months Ended September 29, 2012 Three Months Ended September 24, 2011 Harvest Sales Results Harvest Sales Results (000s m3) (000s m3) ($000s) (000s m3) (000s m3) ($000s) Softwood 92.3 94.7 $ 5,091 98.0 99.0 $ 5,174 Hardwood 113.9 106.0 6,222 121.1 119.5 6,886 Biomass 53.6 53.6 877 60.3 60.3 795 259.8 254.3 12,190 279.4 278.8 12,855 Other sales 1,545 1,418 Net sales $ 13,735 $ 14,273 Adjusted EBITDA $ 3,626 $ 3,410 Adjusted EBITDA margin 26 % 24 % Nine Months Ended September 29, 2012 Nine Months Ended September 24, 2011 Harvest Sales Results Harvest Sales Results (000s m3) (000s m3) ($000s) (000s m3) (000s m3) ($000s) Softwood 302.0 307.3 $ 15,413 352.8 351.6 $ 17,888 Hardwood 299.0 314.7 18,874 346.3 337.7 19,807 Biomass 159.7 159.7 2,745 164.2 164.2 2,430 760.7 781.7 37,032 863.3 853.5 40,125 Other sales 2,250 2,696 Net sales $ 39,282 $ 42,821 Adjusted EBITDA $ 9,227 $ 10,904 Adjusted EBITDA margin 23 % 25 % Softwood, hardwood and biomass shipments were 95 thousand m3, 106 thousand m3 and 54 thousand m3, respectively, for the third quarter of 2012. Approximately 41% was sold as sawlogs, 38% as pulpwood and 21% as biomass. This compares to 34% sold as sawlogs, 44% as pulpwood and 22% as biomass in the third quarter of 2011. Net sales for the third quarter of 2012 were $13.7 million (2011 - $14.3 million) with an average selling price across all log products of $56.39 per m3, which compares to an average log selling price of $55.18 per m3 during the third quarter of 2011. This year-over-year increase in the average selling price reflects the higher percentage of sawtimber in the sales mix, higher prices for hardwood pulpwood due to strong demand and a greater proportion of sales made to more distant markets. Net sales for the nine months ended September 29, 2012 were $39.3 million, a decrease of $3.5 million over the comparable period of 2011 primarily as a result of decreased sales volume. Costs for the third quarter were $10.1 million (2011 - $10.9 million). Variable costs per m3 were 7% higher than the third quarter of 2011 due to increased hauling costs as a greater proportion of sales were made to more distant markets. Total costs per m3 were 3% higher than in the third quarter of 2011. Adjusted EBITDA for the third quarter was $3.6 million, compared to $3.4 million in the comparable period of 2011 as a result of an increase in other sales and an increased proportion of higher margin softwood sawtimber in the sales mix. Adjusted EBITDA margin increased to 26%, compared to 24% for the third quarter of 2011. NB Timberlands experienced one recordable safety incident among contractors and one recordable incident involving an employee during the third quarter of 2012. Both individuals are expected to return to work before the end of the year. Maine Timberlands The table below summarizes operating and financial results for Maine Timberlands: Three Months Ended September 29, 2012 Three Months Ended September 24, 2011 Harvest Sales Results Harvest Sales Results (000s m3) (000s m3) ($000s) (000s m3) (000s m3) ($000s) Softwood 45.3 45.3 $ 2,563 43.8 44.1 $ 2,283 Hardwood 18.1 15.8 989 14.0 13.8 781 Biomass 3.5 3.5 22 4.0 4.0 41 66.9 64.6 3,574 61.8 61.9 3,105 Other sales 214 157 Net sales $ 3,788 $ 3,262 Adjusted EBITDA $ 849 $ 549 Adjusted EBITDA margin 22 % 17 % Nine Months Ended September 29, 2012 Nine Months Ended September 24, 2011 Harvest Sales Results Harvest Sales Results (000s m3) (000s m3) ($000s) (000s m3) (000s m3) ($000s) Softwood 141.7 141.5 $ 7,947 113.8 114.1 $ 5,968 Hardwood 46.3 44.7 2,762 30.4 31.6 1,826 Biomass 8.5 8.5 75 10.6 10.6 98 196.5 194.7 10,784 154.8 156.3 7,892 Other sales 362 301 Net sales $ 11,146 $ 8,193 Adjusted EBITDA $ 2,650 $ 1,630 Adjusted EBITDA margin 24 % 20 % Softwood, hardwood and biomass shipments were 45 thousand m3, 16 thousand m3 and 3 thousand m3, respectively, for the third quarter of 2012. Approximately 59% was sold as sawlogs, 36% as pulpwood and 5% as biomass. This compares to 60% sold as sawlogs, 34% as pulpwood and 6% as biomass in the third quarter of 2011. Net sales for the third quarter of 2012 were $3.8 million (2011 - $3.3 million) with an average selling price across all log products of $57.80 per m3, compared to the average log selling price of $52.90 per m3 during the third quarter of 2011. The year-over-year selling price increase reflects a higher value mix of products sold and improved demand which has resulted in increased prices for most primary products. Net sales for the first nine months ended September 29, 2012 were $11.1 million, an increase of $2.9 million over the comparable period of 2011. Costs for the third quarter were $2.9 million (2011 - $2.7 million). Variable costs per m3 increased 4% in Canadian dollar terms as a result of a 2% increase in U.S. dollar-based contractor rates and the year-over-year weakening of the Canadian dollar compared to the U.S. dollar. Adjusted EBITDA for the third quarter was $0.8 million, compared to $0.5 million in the comparable period of 2011 primarily as a result of increased selling prices. Adjusted EBITDA margin was 22% in the third quarter of 2012 as compared to 17% during the third quarter of 2011. Maine Timberlands experienced one recordable safety incident without lost time among contractors and no recordable incidents among employees during the third quarter of 2012.
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