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A comparative balance sheet for Shabbona Corporation is presented below.

A comparative balance sheet for Shabbona Corporation is presented below.

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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A comparative balance sheet for Shabbona Corporation is presented below. Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings: Total December 31 2014 $ 72,349 84,589 182,589 73,589 257,411 (71,589) $598,938 $36,589 150,000 214,000 198,349 $598,938. 2013 $ 22,000 69,240 192,240 113,240 196,760 (45,240) $548,240 $ 50,240 200,000 164,000 134,000 $548,240 Additional information: 1. Net income for 2014 was $130,178. 2. Cash dividends of $65,829 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. 4. Scrapped fully depreciated equipment that originally cost $5,000 for $250 cash. Required (use EXCEL for each step below): 1. Input the comparative balance sheet into an EXCEL spreadsheet. 2. Add a column that calculates the change in each account from 2013 to 2014. 3. Prepare a statement of cash flows using the indirect method. Show how you reconcile each change in the balance sheet accounts to amounts appearing in the statement of cash flows.
Transcribed Image Text:A comparative balance sheet for Shabbona Corporation is presented below. Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings: Total December 31 2014 $ 72,349 84,589 182,589 73,589 257,411 (71,589) $598,938 $36,589 150,000 214,000 198,349 $598,938. 2013 $ 22,000 69,240 192,240 113,240 196,760 (45,240) $548,240 $ 50,240 200,000 164,000 134,000 $548,240 Additional information: 1. Net income for 2014 was $130,178. 2. Cash dividends of $65,829 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. 4. Scrapped fully depreciated equipment that originally cost $5,000 for $250 cash. Required (use EXCEL for each step below): 1. Input the comparative balance sheet into an EXCEL spreadsheet. 2. Add a column that calculates the change in each account from 2013 to 2014. 3. Prepare a statement of cash flows using the indirect method. Show how you reconcile each change in the balance sheet accounts to amounts appearing in the statement of cash flows.
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