Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets Accounts payable Income taxes payable Dividends payable Lease liability Common stock, $1 p COMPARATIVE BALANCE SHEETS Paid-in capital in excess of par-common stock Retained earnings 2020 $812,100 1.135.500 1.844.800 3.316.600 (1.160,900) 309,500 250.500 $6,508/100 $1,015,400 29.900 79.600 412,000 500,000 1,511,500 2,960,000 2000 400 2019 $700.100 1.158.500 1,713,900 2,964,200 (1,040,300) 274,000 $955.000 50.300 100,500 500,000 1,511.500 2,653.100 Increase (Decrease) 130.900 352,400 (120,600) 35,500 250,500 $5,770/100 $738,000 330 40 $112,300 23,000 1 $60,400 120,400 1 (20,900) 412,000 306,900

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

Please do not give solution in image format ? And Fast Answering Please And explain proper steps by Step ?

Question 6
The following are Pharoah Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.
Cash
Accounts receivable
Inventory
Property, plant, and equipment
Accumulated depreciation
Investment in Myers Co.
Loan receivable
Total assets
Accounts payable
Income taxes payable
Dividends payable
Lease liability
Common stock, $1 par
Paid-in capital in excess of par-common stock
Retained earnings
Total liabilities and stockholders' equity
Additional information:
1.
2.
3.
5.
Declared
Paid
COMPARATIVE BALANCE SHEETS
Amount
2020
2020
December 15, 2020
February 28, 2021
$79,600
SB12,400
1,135,500
1,844,800
3,316,600
(1,160,900)
309,500
250,500
$6,508,400
$1,015,400
29,900
79,600
412,000
500,000
1,511,500
2,960,000
$6,506,400
2019
2019
December 15, 2019
February 28, 2020
$100,500
$700,100
1,158,500
(23,000)
1,713,900
130,900
2,964,200
352,400
(1,040,300) (120,600)
274,000
35,500
250,500
$5,770,400
$955,000
50,300
100,500
-
500,000
1,511,500
2,653,100
Increase
(Decrease)
$112,300
$5,770,400
$738,000
On December 31, 2019, Pharoah acquired 25% of Myers Co.'s common stock for $274,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142,000 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year.
During 2020, Pharoah loaned $312,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700, plus interest at 10%, on December 31, 2020.
On January 2, 2020, Pharoah sold equipment costing $59,600, with a carrying amount of $37,700, for $40,200 cash.
On December 31, 2020, Pharoah entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which equals the fair value of the building. Pharoah made the first rental payment of $59,700 when due on January 2, 2021.
Net income for 2020 was $386,500.
Pharoah declared and paid the following cash dividends for 2020 and 2019.
$60,400
(20,400)
(20,900)
412,000
306,900
$738,000
Prepare a statement of cash flows for Pharoah Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000))
Transcribed Image Text:Question 6 The following are Pharoah Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets Accounts payable Income taxes payable Dividends payable Lease liability Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity Additional information: 1. 2. 3. 5. Declared Paid COMPARATIVE BALANCE SHEETS Amount 2020 2020 December 15, 2020 February 28, 2021 $79,600 SB12,400 1,135,500 1,844,800 3,316,600 (1,160,900) 309,500 250,500 $6,508,400 $1,015,400 29,900 79,600 412,000 500,000 1,511,500 2,960,000 $6,506,400 2019 2019 December 15, 2019 February 28, 2020 $100,500 $700,100 1,158,500 (23,000) 1,713,900 130,900 2,964,200 352,400 (1,040,300) (120,600) 274,000 35,500 250,500 $5,770,400 $955,000 50,300 100,500 - 500,000 1,511,500 2,653,100 Increase (Decrease) $112,300 $5,770,400 $738,000 On December 31, 2019, Pharoah acquired 25% of Myers Co.'s common stock for $274,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,096,000. Myers reported income of $142,000 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. During 2020, Pharoah loaned $312,200 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $61,700, plus interest at 10%, on December 31, 2020. On January 2, 2020, Pharoah sold equipment costing $59,600, with a carrying amount of $37,700, for $40,200 cash. On December 31, 2020, Pharoah entered into a capital lease for an office building. The present value of the annual rental payments is $412,000, which equals the fair value of the building. Pharoah made the first rental payment of $59,700 when due on January 2, 2021. Net income for 2020 was $386,500. Pharoah declared and paid the following cash dividends for 2020 and 2019. $60,400 (20,400) (20,900) 412,000 306,900 $738,000 Prepare a statement of cash flows for Pharoah Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000))
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education