1. Determine the change for each item on the Balance Sheet 2.1dentify where the change will be classifed in the Statement of Cash Flow Michaels Company Comparative Balance Sheets As of December 31, 2020 and 2019 2020 $ 10,000 S 4,000 20,500 12,950 2019 Cash Accounts receivable Short-term investments Inventory Prepaid rent Prepaid insurance Supplies Land 22,000 42,000 3,000 2,100 1,000 125,000 175,000 350,000 350,000 (105,000) (87,500) 525,000 400,000 (130,000)(112,000) 45,000 30,000 35,000 12,000 900 750 *P23.4 (LO 2.4) (SCF-Direct Method) *Michaels Company had available at the end of 2020 the following information. Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 50,000 $910,600 S871,100 S 22,000 S 32,000 5,000 5,000 10,000 Patents Instructions Total assets *Prepare a statement of cash flows for Michaels Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. Accounts payable Income taxes payable Salaries and wages payable Short-term notes payable Long-term notes payable Bonds payable Premium on bonds payable 4,000 3,000 10,000 60,000 70,000 400,000 400,000 20,303 25,853 240,000 220,000 25,000 Common stock Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $910,600 $871,100 17,500 123,297 88,747 Chapter 23 Homework.pptx (8/9) O Type here to search
1. Determine the change for each item on the Balance Sheet 2.1dentify where the change will be classifed in the Statement of Cash Flow Michaels Company Comparative Balance Sheets As of December 31, 2020 and 2019 2020 $ 10,000 S 4,000 20,500 12,950 2019 Cash Accounts receivable Short-term investments Inventory Prepaid rent Prepaid insurance Supplies Land 22,000 42,000 3,000 2,100 1,000 125,000 175,000 350,000 350,000 (105,000) (87,500) 525,000 400,000 (130,000)(112,000) 45,000 30,000 35,000 12,000 900 750 *P23.4 (LO 2.4) (SCF-Direct Method) *Michaels Company had available at the end of 2020 the following information. Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 50,000 $910,600 S871,100 S 22,000 S 32,000 5,000 5,000 10,000 Patents Instructions Total assets *Prepare a statement of cash flows for Michaels Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. Accounts payable Income taxes payable Salaries and wages payable Short-term notes payable Long-term notes payable Bonds payable Premium on bonds payable 4,000 3,000 10,000 60,000 70,000 400,000 400,000 20,303 25,853 240,000 220,000 25,000 Common stock Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $910,600 $871,100 17,500 123,297 88,747 Chapter 23 Homework.pptx (8/9) O Type here to search
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need help with this question.
Transcribed Image Text:1. Determine the change for each item on the
Balance Sheet
Michaels Company
Comparative Balance Sheets
As of December 31, 2020 and 2019
2. Identify where the change will be classifed
in the Statement of Cash Flow
2020
2019
S 10,000 S 4,000
20,500 12,950
22,000 30,000
42,000 35,000
12,000
Cash
Accounts receivable
Short-term investments
Inventory
Prepaid rent
Prepaid insurance
Supplies
Land
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation equipment
Patents
3,000
2,100
1,000
125,000 175,000
350,000 350,000
(105,000) (87,500)
525,000 400,000
(130,000)(112,000)
45,000 50,000
$910,600 S871,100
S 22,000 S 32,000
5,000
900
750
*P23.4 (LO 2. 4) (SCF-Direct Method)
•Michaels Company had available at the end
of 2020 the following information.
•Instructions
Total assets
Accounts payable
Income taxes payable
Salaries and wages payable
Short-term notes payable
Long-term notes payable
Bonds payable
Premium on bonds payable
Common stock
Paid-in capital in excess of par- common stock 25,000 17,500
Retained earnings
Total liabilities and stockholders' equity $910,600 $871,100
•Prepare a statement of cash flows for
Michaels Company using the direct method
accompanied by a reconciliation schedule.
Assume the short-term investments are debt
4,000
5,000
3,000
10,000
10,000
60,000 70,000
400,000 400,000
20,303 25,853
240,000 220,000
securities, classified as available-for-sale.
123,297
88,747
Chapter 23 Homework.pptx (8/9)
Type here to search
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education