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2 eBook The Income statement, balance sheets, and additional Information for Peterson Incorporated are provided. PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $1,560,000 597,000 15,000 16,000 62,000 PETERSON INCORPORATED Balance Sheets December 31 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $2,420,000 6,000 2,426,000 2,250,000 $176,000 4. Declared and paid a cash dividend of $102,000. 5. Issued common stock for $42,000. 2024 $84,280 67,880 133,000 2,928 177,880 208,000 214,000 (116,000) $771,080 $26,000 3,200 30,800 255,000 262,000 194,000 $771,000 2823 $29,768 82,000 127,000 4,440 100,000 254,000 282,000 (101,000) $698,200 $80,000 2,200 33,000 243,000 220,000 120,000 $698,200 D Additional Information for 2024: 1. Purchased additional investment in stocks for $77,000. 2. Sold land for $52,000. The land originally was purchased for $46,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $12,000 in equipment by issuing a $12,000 long-term note payable to the seller. No cash was exchanged in the transaction.

2 eBook The Income statement, balance sheets, and additional Information for Peterson Incorporated are provided. PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable $1,560,000 597,000 15,000 16,000 62,000 PETERSON INCORPORATED Balance Sheets December 31 Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $2,420,000 6,000 2,426,000 2,250,000 $176,000 4. Declared and paid a cash dividend of $102,000. 5. Issued common stock for $42,000. 2024 $84,280 67,880 133,000 2,928 177,880 208,000 214,000 (116,000) $771,080 $26,000 3,200 30,800 255,000 262,000 194,000 $771,000 2823 $29,768 82,000 127,000 4,440 100,000 254,000 282,000 (101,000) $698,200 $80,000 2,200 33,000 243,000 220,000 120,000 $698,200 D Additional Information for 2024: 1. Purchased additional investment in stocks for $77,000. 2. Sold land for $52,000. The land originally was purchased for $46,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $12,000 in equipment by issuing a $12,000 long-term note payable to the seller. No cash was exchanged in the transaction.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2 eBook The Income statement, balance sheets, and additional Information for Peterson Incorporated are provided. Net sales Gain on sale of land. Total revenues Expenses: PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation. $1,560,000 597,000 15,000 16,000 62,000 PETERSON INCORPORATED Balance Sheets December 31 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $2,420,000 6,000 2,426,000 2,250,000 $176,000 4. Declared and paid a cash dividend of $102,000. 5. Issued common stock for $42,000. 2024 $84,280 67,800 133,000 2,920 177,000 208,000 214,000 (116,000) $771,000 $26,000 3,200 30,800 255,000 262,000 194,000 $771,000 2023 $29,760 82,000 127,000 4,440 100,000 254,000 202,000 (101,000). $698, 200 $80,000 2,200 33,000 243,000 220,000 120,000 $698, 200 W Additional Information for 2024: 1. Purchased additional Investment in stocks for $77,000. 2. Sold land for $52,000. The land originally was purchased for $46,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $12,000 in equipment by Issuing a $12,000 long-term note payable to the seller. No cash was exchanged in the transaction.
Transcribed Image Text:2 eBook The Income statement, balance sheets, and additional Information for Peterson Incorporated are provided. Net sales Gain on sale of land. Total revenues Expenses: PETERSON INCORPORATED Income Statement For the Year Ended December 31, 2024 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation. $1,560,000 597,000 15,000 16,000 62,000 PETERSON INCORPORATED Balance Sheets December 31 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $2,420,000 6,000 2,426,000 2,250,000 $176,000 4. Declared and paid a cash dividend of $102,000. 5. Issued common stock for $42,000. 2024 $84,280 67,800 133,000 2,920 177,000 208,000 214,000 (116,000) $771,000 $26,000 3,200 30,800 255,000 262,000 194,000 $771,000 2023 $29,760 82,000 127,000 4,440 100,000 254,000 202,000 (101,000). $698, 200 $80,000 2,200 33,000 243,000 220,000 120,000 $698, 200 W Additional Information for 2024: 1. Purchased additional Investment in stocks for $77,000. 2. Sold land for $52,000. The land originally was purchased for $46,000, resulting in a $6,000 gain being recorded at the time of the sale. 3. Purchased $12,000 in equipment by Issuing a $12,000 long-term note payable to the seller. No cash was exchanged in the transaction.
-Book 5. Issued common stock for $42,000. Required: Prepare the statement of cash flows for Peterson Incorporated using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) PETERSON INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ $ 0 0 0 0
Transcribed Image Text:-Book 5. Issued common stock for $42,000. Required: Prepare the statement of cash flows for Peterson Incorporated using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) PETERSON INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2024 Cash Flows from Operating Activities: Net cash flows from operating activities Cash Flows from Investing Activities: Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ $ 0 0 0 0
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