Assets 2022 2021 Cash $55,760 $18,040 Accounts receivable 69,700 62,320 Inventory 139,400 154,980 Land 65,600 82,000 Equipment 213,200 164,000 Accumulated depreciation – equipment (54,120) (26,240) $489,540 $455,100 Liabilities and Shareholders’ Equity Accounts payable $31,980 $38,540 Bonds payable 123,000 164,000 Common shares 177,120 142,680 Retained earnings 157,440 109,880 $489,540 $455,100 Additional information:1. Net income for 2022 was $76,260. There were no gains or losses reported on the statement of income. 2. Cash dividends of $28,700 were declared and paid. 3. Bonds payable amounting to $41,000 were redeemed for cash $41,000. The bonds were originally issued at face value (no premium or discount). 4. Common shares were issued for $34,440 cash. 5. No land was purchased during 2022. 6. No equipment was disposed of during 2022. Shown below are comparative statements of financial position for Blue Spruce Corporation.BLUE SPRUCE CORPORATIONStatement of Financial PositionDecember 31Assets20222021Cash$55,760$18,040Accounts receivable69,70062,320Inventory139,400154,980Land65.60082,000Equipment213,200164,000Accumulated depreciation - equipment(54,120 )(26,240 )$489,540$455,100Liabilities and Shareholders' EquityAccounts payable$31,980$38,540Bonds payable123.000164,000Common shares177,120142,680Retained earnings157,440109,880$489,540$455,100Additional information:1.Net income for 2022 was $76,260. There were no gains or losses reported on the statement of income.Cash dividends of $28.700 were declared and paid.3.Bonds payable amounting to $41,000 were redeemed for cash $41,000. The bonds were originally issued at face value (nopremium or discount).4.Common shares were issued for $34,440 cash.5.No land was purchased during 2022.6.No equipment was disposed of during 2022. Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).)BLUE SPRUCE CORPORATIONStatement of Cash FlowsAdjustments to reconcile net income to

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Answered: Assets 2022 2021 Cash $55,760…

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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Assets	2022		2021
Cash	$55,760		$18,040
Accounts receivable	69,700		62,320
Inventory	139,400		154,980
Land	65,600		82,000
Equipment	213,200		164,000
Accumulated depreciation – equipment	(54,120	)	(26,240	)
	$489,540		$455,100
Liabilities and Shareholders’ Equity
Accounts payable	$31,980		$38,540
Bonds payable	123,000		164,000
Common shares	177,120		142,680
Retained earnings	157,440		109,880
	$489,540		$455,100

Additional information:

1.		Net income for 2022 was $76,260. There were no gains or losses reported on the statement of income.
2.		Cash dividends of $28,700 were declared and paid.
3.		Bonds payable amounting to $41,000 were redeemed for cash $41,000. The bonds were originally issued at face value (no premium or discount).
4.		Common shares were issued for $34,440 cash.
5.		No land was purchased during 2022.
6.		No equipment was disposed of during 2022.

Shown below are comparative statements of financial position for Blue Spruce Corporation.
BLUE SPRUCE CORPORATION
Statement of Financial Position
December 31
Assets
2022
2021
Cash
$55,760
$18,040
Accounts receivable
69,700
62,320
Inventory
139,400
154,980
Land
65.600
82,000
Equipment
213,200
164,000
Accumulated depreciation - equipment
(54,120 )
(26,240 )
$489,540
$455,100
Liabilities and Shareholders' Equity
Accounts payable
$31,980
$38,540
Bonds payable
123.000
164,000
Common shares
177,120
142,680
Retained earnings
157,440
109,880
$489,540
$455,100
Additional information:
1.
Net income for 2022 was $76,260. There were no gains or losses reported on the statement of income.
Cash dividends of $28.700 were declared and paid.
3.
Bonds payable amounting to $41,000 were redeemed for cash $41,000. The bonds were originally issued at face value (no
premium or discount).
4.
Common shares were issued for $34,440 cash.
5.
No land was purchased during 2022.
6.
No equipment was disposed of during 2022.

Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.
-15,000 or in parenthesis e.g. (15,000).)
BLUE SPRUCE CORPORATION
Statement of Cash Flows
Adjustments to reconcile net income to

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