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Exercise 13-12 (Direct Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: Assets Cash PUFFY LTD. Statement of Financial Position December 31 Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings 2015 2014 $59,460 $24,920 81,490 77,060 187,440 191,710 68,050 103,550 262,400 197,330 (66,000) (31,740) $592,840 $562,830 $38,610 $ 46,730 209,110 149,280 202,950 172,340 202,000 134,650 Total liabilities and shareholders' equity $592,840 $562,830 Additional information: 1. Profit was $117,980. 2. Sales were $979,230. 3. Cost of goods sold was $750,010. 4. Operating expenses were $43,060, exclusive of depreciation expense. 5. Depreciation expense was $34,260. 6. Interest expense was $13,030. 7. Income tax expense was $26,600. Land was sold at a gain of $5,710. 8. 9. 10. 11. No equipment was sold during the year. $59,830 of the bank loan was repaid during the year. Common shares were issued for $30,610.

Exercise 13-12 (Direct Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: Assets Cash PUFFY LTD. Statement of Financial Position December 31 Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings 2015 2014 $59,460 $24,920 81,490 77,060 187,440 191,710 68,050 103,550 262,400 197,330 (66,000) (31,740) $592,840 $562,830 $38,610 $ 46,730 209,110 149,280 202,950 172,340 202,000 134,650 Total liabilities and shareholders' equity $592,840 $562,830 Additional information: 1. Profit was $117,980. 2. Sales were $979,230. 3. Cost of goods sold was $750,010. 4. Operating expenses were $43,060, exclusive of depreciation expense. 5. Depreciation expense was $34,260. 6. Interest expense was $13,030. 7. Income tax expense was $26,600. Land was sold at a gain of $5,710. 8. 9. 10. 11. No equipment was sold during the year. $59,830 of the bank loan was repaid during the year. Common shares were issued for $30,610.

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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Exercise 13-12 (Direct Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: Assets Cash PUFFY LTD. Statement of Financial Position December 31 Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings 2015 2014 $24,920 $59,460 81,490 77,060 187,440 191,710 68,050 103,550 262,400 197,330 (66,000) (31,740) $592,840 $562,830 Additional information: $38,610 149,280 202,950 172,340 202,000 134,650 Total liabilities and shareholders' equity $592,840 $562,830 $ 46,730 209,110 1. Profit was $117,980. 2. Sales were $979,230. 3. Cost of goods sold was $750,010. 4. Operating expenses were $43,060, exclusive of depreciation expense. 5. Depreciation expense was $34,260. 6. Interest expense was $13,030. 7. Income tax expense was $26,600. 8. Land was sold at a gain of $5,710. 9. 10. 11. No equipment was sold during the year. $59,830 of the bank loan was repaid during the year. Common shares were issued for $30,610.
Transcribed Image Text:Exercise 13-12 (Direct Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: Assets Cash PUFFY LTD. Statement of Financial Position December 31 Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings 2015 2014 $24,920 $59,460 81,490 77,060 187,440 191,710 68,050 103,550 262,400 197,330 (66,000) (31,740) $592,840 $562,830 Additional information: $38,610 149,280 202,950 172,340 202,000 134,650 Total liabilities and shareholders' equity $592,840 $562,830 $ 46,730 209,110 1. Profit was $117,980. 2. Sales were $979,230. 3. Cost of goods sold was $750,010. 4. Operating expenses were $43,060, exclusive of depreciation expense. 5. Depreciation expense was $34,260. 6. Interest expense was $13,030. 7. Income tax expense was $26,600. 8. Land was sold at a gain of $5,710. 9. 10. 11. No equipment was sold during the year. $59,830 of the bank loan was repaid during the year. Common shares were issued for $30,610.
Cash payments PUFFY LTD. Statement of Cash Flows-Direct Method Year Ended December 31, 2015 + ♦ + + + + + + + ♦ + + + $
Transcribed Image Text:Cash payments PUFFY LTD. Statement of Cash Flows-Direct Method Year Ended December 31, 2015 + ♦ + + + + + + + ♦ + + + $
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