Coronado Inc. had the following balance sheet at December 31, 2019.CORONADO INC.BALANCE SHEETDECEMBER 31, 2019Cash $ 24,780 Accounts payable $ 34,780Accounts receivable 25,980 Bonds payable 45,780Investments 32,000 Common stock 104,780Plant assets (net) 85,780 Retained earnings 27,980Land 44,780 $213,320 $213,320 During 2020, the following occurred.1. Coronado liquidated its available-for-sale debt investment portfolio at a loss of $9,780.2. A tract of land was purchased for $42,780.3. An additional $30,000 in common stock was issued at par.4. Dividends totaling $14,780 were declared and paid to stockholders.5. Net income for 2020 was $39,780, including $16,780 in depreciation expense.6. Land was purchased through the issuance of $34,780 in additional bonds.7. At December 31, 2020, Cash was $74,980, Accounts Receivable was $46,780, and Accounts Payable was $44,780. 2. Prepare an unclassified balance sheet as it would appear at December 31, 2020.3. Compute two cash flow ratios

Given are the transactions that need to be recorded in the financial statements.

Answered: Coronado Inc. had the following balance…

10th Edition

ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Coronado Inc. had the following balance sheet at December 31, 2019.

CORONADO INC. BALANCE SHEET DECEMBER 31, 2019
Cash	$ 24,780	Accounts payable	$ 34,780
Accounts receivable	25,980	Bonds payable	45,780
Investments	32,000	Common stock	104,780
Plant assets (net)	85,780	Retained earnings	27,980
Land	44,780		$213,320
	$213,320

During 2020, the following occurred.

1.		Coronado liquidated its available-for-sale debt investment portfolio at a loss of $9,780.
2.		A tract of land was purchased for $42,780.
3.		An additional $30,000 in common stock was issued at par.
4.		Dividends totaling $14,780 were declared and paid to stockholders.
5.		Net income for 2020 was $39,780, including $16,780 in depreciation expense.
6.		Land was purchased through the issuance of $34,780 in additional bonds.
7.		At December 31, 2020, Cash was $74,980, Accounts Receivable was $46,780, and Accounts Payable was $44,780.