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Business
Accounting
Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets. Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Hages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity DELRAY INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense. Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2019 $ 84,200 70,000 71,000 5,300 230,500 163,000 (42,000) $ 351,500 $ 71,000 83,000 $ 34,000 7,000 4,100 45,100 45,000 90,100 220,000 41,400 $ 351,500 $ 852,000 521,000 331,000 206,600 151,000 (14,000) $ 343,600 $ 154,000 177,000 2018 3,900 180,900 55,370 $ 125,530 $ 47,000 55,000 98,000 6,600 $ 42,000 17,000 4,600 63,600 90,000 153,600 160,000 30,000 $ 343,600 Additional Information a. A $45,000 note payable is retired at its $45,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000, yielding a $3,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.

Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets. Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Hages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity DELRAY INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense. Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2019 $ 84,200 70,000 71,000 5,300 230,500 163,000 (42,000) $ 351,500 $ 71,000 83,000 $ 34,000 7,000 4,100 45,100 45,000 90,100 220,000 41,400 $ 351,500 $ 852,000 521,000 331,000 206,600 151,000 (14,000) $ 343,600 $ 154,000 177,000 2018 3,900 180,900 55,370 $ 125,530 $ 47,000 55,000 98,000 6,600 $ 42,000 17,000 4,600 63,600 90,000 153,600 160,000 30,000 $ 343,600 Additional Information a. A $45,000 note payable is retired at its $45,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000, yielding a $3,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.

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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VaRuca Post-closing Y DELRAY INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers Cash paid for merchandise Cash paid for operating expenses Cash paid for income taxes Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Cash flows from financing activities: Cash received from stock issuance Cash paid for operating expenses Cash paid for dividends Show Transcribed Text ♥ ♥ ♡ Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Increase in accounts payable ♥ ♥ ✔ x ♥ c DELRAY INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Loss on sale of equipment <Direct Method ✔ ♥ X ***** X X Indirect Method >
Transcribed Image Text:VaRuca Post-closing Y DELRAY INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers Cash paid for merchandise Cash paid for operating expenses Cash paid for income taxes Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Cash flows from financing activities: Cash received from stock issuance Cash paid for operating expenses Cash paid for dividends Show Transcribed Text ♥ ♥ ♡ Changes in current operating assets and liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Increase in accounts payable ♥ ♥ ✔ x ♥ c DELRAY INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Loss on sale of equipment <Direct Method ✔ ♥ X ***** X X Indirect Method >
Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable. Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses For DELRAY INCORPORATED Income Statement Year Ended June 30, 2019 Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2019 $ 84,200 70,000 71,000 5,300 230,500 163,000 (42,000) $ 351,500 $ 71,000 83,000 $ 34,000 7,000 4,100 45,100 45,000 90,100 220,000 41,400 $ 351,500 $ 852,000 521,000 331,000 $ 154,000 177,000 206,600 151,000 (14,000) $ 343,600 2018 $ 47,000 55,000 98,000 6,600 3,900 180,900 55,370 $ 125,530 $ 42,000 17,000 4,600 63,600 90,000 153,600 160,000 30,000 $ 343,600 Additional Information a. A $45,000 note payable is retired at its $45,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000, yielding a $3,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Transcribed Image Text:Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable. Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit Operating expenses For DELRAY INCORPORATED Income Statement Year Ended June 30, 2019 Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2019 $ 84,200 70,000 71,000 5,300 230,500 163,000 (42,000) $ 351,500 $ 71,000 83,000 $ 34,000 7,000 4,100 45,100 45,000 90,100 220,000 41,400 $ 351,500 $ 852,000 521,000 331,000 $ 154,000 177,000 206,600 151,000 (14,000) $ 343,600 2018 $ 47,000 55,000 98,000 6,600 3,900 180,900 55,370 $ 125,530 $ 42,000 17,000 4,600 63,600 90,000 153,600 160,000 30,000 $ 343,600 Additional Information a. A $45,000 note payable is retired at its $45,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,000 cash. d. Received cash for the sale of equipment that had cost $58,000, yielding a $3,900 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.
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