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Cash Current assets other than cash Equity investments Plant assets (net) Land Balance Sheet December 31, 2019 $ 8,500 29,000 20,000 67,500 40.000 Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings $ 15,000 25,500 25,000 75,000 24.500

Cash Current assets other than cash Equity investments Plant assets (net) Land Balance Sheet December 31, 2019 $ 8,500 29,000 20,000 67,500 40.000 Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings $ 15,000 25,500 25,000 75,000 24.500

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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E23.17 (LO 2) (SCF-Indirect Method and Balance Sheet) Jobim Inc. had the following condensed balance sheet at the end of operations for 2019. Cash Current assets other than cash Equity investments Plant assets (net) Land Jobim Inc. Balance Sheet December 31, 2019 $ 8,500 29,000 20,000 67,500 40,000 $165,000 Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings $ 15,000 25,500 25,000 75,000 24,500 $165,000 During 2020, the following occurred. 1. A tract of land was purchased for $9,000. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,375 were paid to stockholders. 5. Net income was $35,250 after allowing depreciation of $13,500. 6. Land was purchased through the issuance of $22,500 in bonds. 7. Jobim Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2020. 8. Both current assets (other than cash) and current liabilities remained at the same amount. Instructions a. Prepare a statement of cash flows for 2020 using the indirect method. b. Prepare the condensed balance sheet for Jobim Inc. as it would appear at December 31, 2020.
Transcribed Image Text:E23.17 (LO 2) (SCF-Indirect Method and Balance Sheet) Jobim Inc. had the following condensed balance sheet at the end of operations for 2019. Cash Current assets other than cash Equity investments Plant assets (net) Land Jobim Inc. Balance Sheet December 31, 2019 $ 8,500 29,000 20,000 67,500 40,000 $165,000 Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings $ 15,000 25,500 25,000 75,000 24,500 $165,000 During 2020, the following occurred. 1. A tract of land was purchased for $9,000. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,375 were paid to stockholders. 5. Net income was $35,250 after allowing depreciation of $13,500. 6. Land was purchased through the issuance of $22,500 in bonds. 7. Jobim Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2020. 8. Both current assets (other than cash) and current liabilities remained at the same amount. Instructions a. Prepare a statement of cash flows for 2020 using the indirect method. b. Prepare the condensed balance sheet for Jobim Inc. as it would appear at December 31, 2020.
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