Following are selected balance sheet accounts of Monty Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Selected balance sheet accounts Increase Assets 2020 2019 (Decrease) Accounts receivable $33,700 $24,100 $9,600 Property, plant, and equipment 277,700 246,600 31.100 Accumulated depreciation-plant assets (177,000 ) (167,000 ) (10,000 ) Liabilities and stockholders' equity. Bonds payable 2020 2019 Increase $49.200 $45,700 $3,500 Dividends payable 8,100 5.100 3,000 Common stock, $1 par 22,100 19,200 2,900 Additional paid-in capital 9.100 3,000 6.100 Retained earnings 105,000 90,500 14,500 Selected income statement information for the year ended December 31, 2020: Sales revenue $154,200 Depreciation 38,100 Gain on sale of equipment 14,500 Net income 31,000 Additional information: 1. During 2020, equipment costing $45,200 was sold for cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2020, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items. Activity (a) Payments for purchase of property, plant, and equipment. %24 (b) Proceeds from the sale of equipment. (c) Cash dividends paid. (d) Redemption of bonds payable. %24 > > >
Following are selected balance sheet accounts of Monty Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Selected balance sheet accounts Increase Assets 2020 2019 (Decrease) Accounts receivable $33,700 $24,100 $9,600 Property, plant, and equipment 277,700 246,600 31.100 Accumulated depreciation-plant assets (177,000 ) (167,000 ) (10,000 ) Liabilities and stockholders' equity. Bonds payable 2020 2019 Increase $49.200 $45,700 $3,500 Dividends payable 8,100 5.100 3,000 Common stock, $1 par 22,100 19,200 2,900 Additional paid-in capital 9.100 3,000 6.100 Retained earnings 105,000 90,500 14,500 Selected income statement information for the year ended December 31, 2020: Sales revenue $154,200 Depreciation 38,100 Gain on sale of equipment 14,500 Net income 31,000 Additional information: 1. During 2020, equipment costing $45,200 was sold for cash. 2. Accounts receivable relate to sales of merchandise. 3. During 2020, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items. Activity (a) Payments for purchase of property, plant, and equipment. %24 (b) Proceeds from the sale of equipment. (c) Cash dividends paid. (d) Redemption of bonds payable. %24 > > >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Following are selected balance sheet accounts of Monty Bros. Corp. at December 31, 2020 and 2019, and the increases or
decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended
December 31, 2020, and additional information.
Selected balance sheet accounts
Increase
Assets
2020
2019
(Decrease)
Accounts receivable
$33,700
$24,100
$9.600
Property, plant, and equipment
277,700
246,600
31,100
Accumulated depreciation-plant assets
(177,000 )
(167,000 )
(10,000 )
Liabilities and stockholders' equity.
2020
2019
Increase
Bonds payable
$49,200
$45,700
$3,500
Dividends payable
8,100
5,100
3,000
Common stock, $1 par
22,100
19,200
2,900
Additional paid-in capital
9.100
3,000
6.100
Retained earnings
105,000
90,500
14,500
Selected income statement information for the year ended December 31, 2020:
Sales revenue
$154,200
Depreciation
38,100
Gain on sale of equipment
14,500
Net income
31,000
Additional information:
1.
During 2020, equipment costing $45,200 was sold for cash.
2.
Accounts receivable relate to sales of merchandise.
3.
During 2020, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. There was no
amortization of bond discount or premium.
Determine the category (operating investing, or financing) and the amount that should be reported in the statement of cash flows
for the following items.
Activity
(a)
Payments for purchase of property, plant, and equipment.
(b)
Proceeds from the sale of equipment.
24
(c)
Cash dividends paid.
(d)
Redemption of bonds payable.
%24
%24
%24
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