2020 2019 Account Description Debit Debit Cash          43,700         18,200 Accounts Receivable           24,500         13,377 Allowance for doubtful accounts             (900)             (427) Inventory          44,200         35,000 Prepaid expenses          15,100         12,900 Supplies            1,000              750 Investments        132,200       157,000 Property, plant, and equipment:     Land        125,000       175,000 Buildings        350,000       350,000 Less: Accumulated depreciation - buildings      (105,000)        (87,500) Equipment        525,000       400,000 Less: Accumulated depreciation - equipment      (130,000)      (112,000) Patents          45,000         50,000 Accounts Payable        (20,000)        (32,000) Income Tax Payable          (6,000)          (4,000) Salaries and Wages Payable          (8,100)          (5,800) Dividend Payable        (16,500)        (14,400) Short term Notes Payable        (10,000)        (10,000) Long term notes payable        (60,000)        (70,000) Bonds Payable      (400,000)      (400,000) Add: Premium on bonds payable        (20,303)        (25,853) Shareholders' equity:     Common Stock, $10 par, outstanding 2020 2.4 million shares, and 2019 2.2 million shares      (240,000)      (220,000) Paind in capital in excess of par - common stock        (25,000)        (17,500) Retained Earnings      (212,747)      (148,711) Dividends          28,800         33,000       Sales   (1,160,000)   (1,290,000) Cost of Goods Sold        748,000       786,900 Sales salaries expense          48,000         62,500 Sales benefit expense          15,400         20,000 Advertising          13,500         18,000 Sales travel expense            2,000           2,200 Sales supplies expense               300              350 Sales depreciation expense          13,400         15,200 Admin salaries expense        105,600       110,800 Admin benefits expense          42,250         45,650 Admin travel expense            4,200           4,350 Admin supplies expense            1,450           1,320 Admin maintenance expense            3,200           5,000 Admin maintenance expense            3,200           5,000 Admin depreciation expense          22,100         25,800 Gain on sale of plant assets          (8,000)                 -   Gain on sale of long term investments          (4,000)   Loss on sale of long term investments                 -             8,400 Dividend revenue          (2,400)          (2,600) Interest expense          32,450         33,450 Income tax expense          39,400         50,644 Using the trial balance above complete a Statement of Cash Flows for 2020. Use the indirect method. See additional information below.  *During 2020 15% of total sales were credit sales   Gain on sale of plant assets is related to the Land transaction. Decrease in the patent value is due to an impairment New equipment was purchased. Common stock was issued on 9/1/2020. Common stock was issued on 9/1/2020. Net Income for 2020 is $79,950.

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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  2020 2019
Account Description Debit Debit
Cash          43,700         18,200
Accounts Receivable           24,500         13,377
Allowance for doubtful accounts             (900)             (427)
Inventory          44,200         35,000
Prepaid expenses          15,100         12,900
Supplies            1,000              750
Investments        132,200       157,000
Property, plant, and equipment:    
Land        125,000       175,000
Buildings        350,000       350,000
Less: Accumulated depreciation - buildings      (105,000)        (87,500)
Equipment        525,000       400,000
Less: Accumulated depreciation - equipment      (130,000)      (112,000)
Patents          45,000         50,000
Accounts Payable        (20,000)        (32,000)
Income Tax Payable          (6,000)          (4,000)
Salaries and Wages Payable          (8,100)          (5,800)
Dividend Payable        (16,500)        (14,400)
Short term Notes Payable        (10,000)        (10,000)
Long term notes payable        (60,000)        (70,000)
Bonds Payable      (400,000)      (400,000)
Add: Premium on bonds payable        (20,303)        (25,853)
Shareholders' equity:    
Common Stock, $10 par, outstanding 2020 2.4 million shares, and 2019 2.2 million shares      (240,000)      (220,000)
Paind in capital in excess of par - common stock        (25,000)        (17,500)
Retained Earnings      (212,747)      (148,711)
Dividends          28,800         33,000
     
Sales   (1,160,000)   (1,290,000)
Cost of Goods Sold        748,000       786,900
Sales salaries expense          48,000         62,500
Sales benefit expense          15,400         20,000
Advertising          13,500         18,000
Sales travel expense            2,000           2,200
Sales supplies expense               300              350
Sales depreciation expense          13,400         15,200
Admin salaries expense        105,600       110,800
Admin benefits expense          42,250         45,650
Admin travel expense            4,200           4,350
Admin supplies expense            1,450           1,320
Admin maintenance expense            3,200           5,000
Admin maintenance expense            3,200           5,000
Admin depreciation expense          22,100         25,800
Gain on sale of plant assets          (8,000)                 -  
Gain on sale of long term investments          (4,000)  
Loss on sale of long term investments                 -             8,400
Dividend revenue          (2,400)          (2,600)
Interest expense          32,450         33,450
Income tax expense          39,400         50,644

Using the trial balance above complete a Statement of Cash Flows for 2020. Use the indirect method. See additional information below. 

*During 2020 15% of total sales were credit sales
 
Gain on sale of plant assets is related to the Land transaction.
Decrease in the patent value is due to an impairment
New equipment was purchased.
Common stock was issued on 9/1/2020.
Common stock was issued on 9/1/2020.

Net Income for 2020 is $79,950. 

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