E5.17 (LO1, 2, 3) (Preparation of a Statement of Cash Flows and a Statement of Financial Position) Chekov Corporation's statement of financial position at the end of 2021 included the following items. $ 30,000 Bonds payable 120,000 Current liabilities Land $100,000 Buildings 150,000 Equipment Accum. depr.-buildings (30,000) Retained earnings 90,000 Share capital-ordinary 180,000 44,000 Accum. depr.-equipment (11,000) Total $474,000 Patents 40,000 Current assets 235,000 Total $474,000 The following information is available for 2022. 1. Net income was $55,000. 2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $9,000. 3. Depreciation expense was $4,000 on the building and $9,000 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $25,000. Current liabilities increased by $13,000. 6. An addition to the building was completed at a cost of $27,000. 7. A long-term investment in debt securities was purchased for $16,000. 8. Bonds payable of $50,000 were issued. 9. Cash dividends of $25,000 were declared and paid. 10. Treasury shares were purchased at a cost of $11,000. Instructions (Show only totals for eurrent assets and current liabilities.) a. Prepare a statement of cash flows for 2022. b. Prepare a statement of financial position at December 31, 2022.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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E5.17 (LO 1, 2, 3) (Preparation of a Statement of Cash Flows and a Statement of Financial
Position) Chekov Corporation's statement of financial position at the end of 2021 included the
following items.
Land
$ 30,000 Bonds payable
$100,000
Buildings
Equipment
Accum. depr.-buildings (30,000) Retained earnings
Accum, depr.-equipment (11,000)
120,000 Current liabilities
150,000
90,000 Share capital-ordinary 180,000
44,000
Total
$474,000
Patents
40,000
Current assets
235,000
Total
$474,000
The following information is available for 2022.
1. Net income was $55,000.
2. Equipment (cost $20,000 and accumulated depreciation $8,00o) was sold for $9,000.
3. Depreciation expense was $4,000 on the building and $9,000 on equipment.
4. Patent amortization was $2,500.
5. Current assets other than cash increased by $25,000. Current liabilities increased by $13,000.
6. An addition to the building was completed at a cost of $27,000.
7. A long-term investment in debt securities was purchased for $16,000.
8. Bonds payable of $50,000 were issued.
9. Cash dividends of $25,000 were declared and paid.
10. Treasury shares were purchased at a cost of $11,000.
Instructions
(Show only totals for current assets and current liabilities.)
a. Prepare a statement of cash flows for 2022.
b. Prepare a statement of financial position at December 31, 2022.
Transcribed Image Text:E5.17 (LO 1, 2, 3) (Preparation of a Statement of Cash Flows and a Statement of Financial Position) Chekov Corporation's statement of financial position at the end of 2021 included the following items. Land $ 30,000 Bonds payable $100,000 Buildings Equipment Accum. depr.-buildings (30,000) Retained earnings Accum, depr.-equipment (11,000) 120,000 Current liabilities 150,000 90,000 Share capital-ordinary 180,000 44,000 Total $474,000 Patents 40,000 Current assets 235,000 Total $474,000 The following information is available for 2022. 1. Net income was $55,000. 2. Equipment (cost $20,000 and accumulated depreciation $8,00o) was sold for $9,000. 3. Depreciation expense was $4,000 on the building and $9,000 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $25,000. Current liabilities increased by $13,000. 6. An addition to the building was completed at a cost of $27,000. 7. A long-term investment in debt securities was purchased for $16,000. 8. Bonds payable of $50,000 were issued. 9. Cash dividends of $25,000 were declared and paid. 10. Treasury shares were purchased at a cost of $11,000. Instructions (Show only totals for current assets and current liabilities.) a. Prepare a statement of cash flows for 2022. b. Prepare a statement of financial position at December 31, 2022.
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