Callaho Inc. began operations on January 1, 2018. Its adjusted trial balance at December 31, 2019 and 2020 is shown below. Other information regarding Callaho Inc. and its activities during 2020 follow in (a) through (e): a. Assume all accounts have normal balances. b. Equipment was sold for cash of $33,700. c. Old machinery was sold for cash of $19,200. New machinery was purchased for $25,000 cash. d. Common stock was issued for cash. e. Cash dividends of $73,000 were declared and paid. Using the information provided, prepare a statement of cash flows (using the indirect method) for the year ended December 31, 2020. Callaho Inc. Adjusted Trial Balance (select one) Statement of Cash Flows Account Accounts payable.... Accounts receivable... Accumulated depreciation, equipment Accumulated depreciation, machinery. Allowance for doubtful accounts Depreciation expense, equipment... Depreciation expense, machinery... Cash Equipment Machinery... Merchandise inventory.. December 31 2020 2019 48,290 52,000 61,300 78,500 1,600 55,500 + 6,900 87,500 3,300 8,500 10,800 10,800 7,900 7,900 196,280 150,000 15,300 113,000 42,500 127,000 139,220 156,000 XX Long-term notes payable... 53,910 64,000 Other expenses (including losses).. 530,000 40,000 Retained earnings... Revenues (including gains).. Common stock Unearned revenue 72,000 58,000 572,700 72,700 281,000 251,000 36,600 34,000 (select one)
Callaho Inc. began operations on January 1, 2018. Its adjusted trial balance at December 31, 2019 and 2020 is shown below. Other information regarding Callaho Inc. and its activities during 2020 follow in (a) through (e): a. Assume all accounts have normal balances. b. Equipment was sold for cash of $33,700. c. Old machinery was sold for cash of $19,200. New machinery was purchased for $25,000 cash. d. Common stock was issued for cash. e. Cash dividends of $73,000 were declared and paid. Using the information provided, prepare a statement of cash flows (using the indirect method) for the year ended December 31, 2020. Callaho Inc. Adjusted Trial Balance (select one) Statement of Cash Flows Account Accounts payable.... Accounts receivable... Accumulated depreciation, equipment Accumulated depreciation, machinery. Allowance for doubtful accounts Depreciation expense, equipment... Depreciation expense, machinery... Cash Equipment Machinery... Merchandise inventory.. December 31 2020 2019 48,290 52,000 61,300 78,500 1,600 55,500 + 6,900 87,500 3,300 8,500 10,800 10,800 7,900 7,900 196,280 150,000 15,300 113,000 42,500 127,000 139,220 156,000 XX Long-term notes payable... 53,910 64,000 Other expenses (including losses).. 530,000 40,000 Retained earnings... Revenues (including gains).. Common stock Unearned revenue 72,000 58,000 572,700 72,700 281,000 251,000 36,600 34,000 (select one)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Callaho Inc. began operations on January 1, 2018. Its adjusted trial balance at December 31, 2019 and 2020 is shown below.
Other information regarding Callaho Inc. and its activities during 2020 follow in (a) through (e):
a. Assume all accounts have normal balances.
b. Equipment was sold for cash of $33,700.
c. Old machinery was sold for cash of $19,200. New machinery was purchased for $25,000 cash.
d. Common stock was issued for cash.
e. Cash dividends of $73,000 were declared and paid.
Using the information provided, prepare a statement of cash flows (using the indirect method) for the year ended December 31, 2020.
Callaho Inc.
Adjusted Trial Balance
(select one)
Statement of Cash Flows
Account
Accounts payable....
Accounts receivable...
Accumulated depreciation, equipment
Accumulated depreciation, machinery.
Allowance for doubtful accounts
Depreciation expense, equipment...
Depreciation expense, machinery...
Cash
Equipment
Machinery...
Merchandise inventory..
December 31
2020 2019
48,290 52,000
61,300 78,500
1,600 55,500
+
6,900 87,500
3,300 8,500
10,800 10,800
7,900 7,900
196,280 150,000
15,300 113,000
42,500 127,000
139,220 156,000
XX
Long-term notes payable...
53,910 64,000
Other expenses (including losses)..
530,000 40,000
Retained earnings...
Revenues (including gains)..
Common stock
Unearned revenue
72,000 58,000
572,700 72,700
281,000 251,000
36,600 34,000
(select one)
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