eld me preparing Schedule 1 Cash flow from operating activities and Schedule 2 cash flows from operating activities and worksheet entries The following information is available for Bott Company: Account Balances December 31, 2018 December 31, 2019 Debits Cash $ 1,800 $ 2,000 Accounts Receivable (net) 4,600 4,720 Notes Receivable (short-term) 0 1,000 Inventories 12,000 9,700 Prepaid Items 1,700 1,380 Land 11,000 17,100 Buildings and Equipment 78,000 110,000 Patent 4,400 4,000 Treasury Stock (common, at cost, $25 per share) 2,500 1,000 Totals $116,000 $150,900 Credits Accumulated Depreciation $24,000 $31,800 Accounts Payable 6,000 8,210 Salaries Payable 2,600 3,500 Miscellaneous Current Payables 1,400 1,200 Interest Payable 0 140 12% Bonds Payable 0 7,000 Premium on Bonds Payable 0 650 Convertible Preferred Stock, $50 par 9,000 6,500 Additional Paid-in Capital on Preferred Stock 3,000 2,500 Common Stock, $10 par 18,000 23,500 Additional Paid-in Capital on Common Stock 28,800 41,150 Retained Earnings 23,200 24,750 Totals $116,000 $150,900 Additional information for the year: Beginning retained earnings, unadjusted $23,200 Less: Prior period adjustment—correction of understatement of depreciation (net of income taxes) (1,300) Adjusted beginning retained earnings $21,900 Add: Net income 11,500 $33,400 Less: Cash dividends $(4,000) Stock dividends (150 shares at $31 per share) (4,650) (8,650) Ending retained earnings $24,750 Last year, depreciation expense was inadvertently understated in the amount of $1,800. The correction was made this year to Accumulated Depreciation and to Retained Earnings as a prior period adjustment. The company also received a related income tax refund of $500. Sixty shares of treasury stock (common) were reissued at $30 per share. Bonds payable with a face amount of $7,000 were issued for $7,750 on April 30, 2019. The bonds mature on April 30, 2021, and pay interest semiannually. The straight-line method is used to amortize the bond premium. Interest expense totaled $460 for 2019. Fifty shares of preferred stock (originally issued at $60 per share) were converted into 100 shares of common stock. Land costing $2,900 was sold for $3,800. Three hundred shares of common stock were sold for $33 per share. Equipment costing $32,000 was purchased during the year. Land was acquired at a cost of $9,000 during the year. Depreciation expense was $6,000. Patent amortization was $400. The company loaned money to one of its executives and received a $1,000 short-term note receivable on December 31, 2019. The note matures 90 days from the date of issuance. Required: Prepare a spreadsheet to support a statement of cash flows for 2019. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

eld me preparing Schedule 1 Cash flow from operating activities and Schedule 2 cash flows from operating activities and worksheet entries The following information is available for Bott Company: Account Balances December 31, 2018 December 31, 2019 Debits Cash $ 1,800 $ 2,000 Accounts Receivable (net) 4,600 4,720 Notes Receivable (short-term) 0 1,000 Inventories 12,000 9,700 Prepaid Items 1,700 1,380 Land 11,000 17,100 Buildings and Equipment 78,000 110,000 Patent 4,400 4,000 Treasury Stock (common, at cost, $25 per share) 2,500 1,000 Totals $116,000 $150,900 Credits Accumulated Depreciation $24,000 $31,800 Accounts Payable 6,000 8,210 Salaries Payable 2,600 3,500 Miscellaneous Current Payables 1,400 1,200 Interest Payable 0 140 12% Bonds Payable 0 7,000 Premium on Bonds Payable 0 650 Convertible Preferred Stock, $50 par 9,000 6,500 Additional Paid-in Capital on Preferred Stock 3,000 2,500 Common Stock, $10 par 18,000 23,500 Additional Paid-in Capital on Common Stock 28,800 41,150 Retained Earnings 23,200 24,750 Totals $116,000 $150,900 Additional information for the year: Beginning retained earnings, unadjusted $23,200 Less: Prior period adjustment—correction of understatement of depreciation (net of income taxes) (1,300) Adjusted beginning retained earnings $21,900 Add: Net income 11,500 $33,400 Less: Cash dividends $(4,000) Stock dividends (150 shares at $31 per share) (4,650) (8,650) Ending retained earnings $24,750 Last year, depreciation expense was inadvertently understated in the amount of $1,800. The correction was made this year to Accumulated Depreciation and to Retained Earnings as a prior period adjustment. The company also received a related income tax refund of $500. Sixty shares of treasury stock (common) were reissued at $30 per share. Bonds payable with a face amount of $7,000 were issued for $7,750 on April 30, 2019. The bonds mature on April 30, 2021, and pay interest semiannually. The straight-line method is used to amortize the bond premium. Interest expense totaled $460 for 2019. Fifty shares of preferred stock (originally issued at $60 per share) were converted into 100 shares of common stock. Land costing $2,900 was sold for $3,800. Three hundred shares of common stock were sold for $33 per share. Equipment costing $32,000 was purchased during the year. Land was acquired at a cost of $9,000 during the year. Depreciation expense was $6,000. Patent amortization was $400. The company loaned money to one of its executives and received a $1,000 short-term note receivable on December 31, 2019. The note matures 90 days from the date of issuance. Required: Prepare a spreadsheet to support a statement of cash flows for 2019. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Held me preparing Schedule 1 Cash flow from operating activities and Schedule 2 cash flows from operating activities and worksheet entries

The following information is available for Bott Company:

	Account Balances
	December 31, 2018	December 31, 2019
Debits
Cash	$ 1,800	$ 2,000
Accounts Receivable (net)	4,600	4,720
Notes Receivable (short-term)	0	1,000
Inventories	12,000	9,700
Prepaid Items	1,700	1,380
Land	11,000	17,100
Buildings and Equipment	78,000	110,000
Patent	4,400	4,000
Treasury Stock (common, at cost, $25 per share)	2,500	1,000
Totals	$116,000	$150,900
Credits
Accumulated Depreciation	$24,000	$31,800
Accounts Payable	6,000	8,210
Salaries Payable	2,600	3,500
Miscellaneous Current Payables	1,400	1,200
Interest Payable	0	140
12% Bonds Payable	0	7,000
Premium on Bonds Payable	0	650
Convertible Preferred Stock, $50 par	9,000	6,500
Additional Paid-in Capital on Preferred Stock	3,000	2,500
Common Stock, $10 par	18,000	23,500
Additional Paid-in Capital on Common Stock	28,800	41,150
Retained Earnings	23,200	24,750
Totals	$116,000	$150,900

Additional information for the year:

Beginning retained earnings, unadjusted		$23,200
Less: Prior period adjustment—correction of understatement of depreciation (net of income taxes)		(1,300)
Adjusted beginning retained earnings		$21,900
Add: Net income		11,500
		$33,400
Less: Cash dividends	$(4,000)
Stock dividends (150 shares at $31 per share)	(4,650)	(8,650)
Ending retained earnings		$24,750

Last year, depreciation expense was inadvertently understated in the amount of $1,800. The correction was made this year to Accumulated Depreciation and to Retained Earnings as a prior period adjustment. The company also received a related income tax refund of $500.
Sixty shares of treasury stock (common) were reissued at $30 per share.
Bonds payable with a face amount of $7,000 were issued for $7,750 on April 30, 2019. The bonds mature on April 30, 2021, and pay interest semiannually. The straight-line method is used to amortize the bond premium. Interest expense totaled $460 for 2019.
Fifty shares of preferred stock (originally issued at $60 per share) were converted into 100 shares of common stock.
Land costing $2,900 was sold for $3,800.
Three hundred shares of common stock were sold for $33 per share.
Equipment costing $32,000 was purchased during the year.
Land was acquired at a cost of $9,000 during the year.
Depreciation expense was $6,000.
Patent amortization was $400.
The company loaned money to one of its executives and received a $1,000 short-term note receivable on December 31, 2019. The note matures 90 days from the date of issuance.

Required:

Prepare a spreadsheet to support a statement of cash flows for 2019. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here