Kelley Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash KELLEY CORPORATION Comparative Balance Sheets December 31 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ 335,000 118,000 $ 216,000 101,000 546,000 863,000 329,000 (114,000) 624,000 1,077,000 378,000 (178,000) $ 1,277,000 $ 111,000 30,000 $ 1,078,000 $ 91,000 Income taxes payable Total current liabilities Equity Common stock, $2 par value Retained earnings Paid-in capital in excess of par value, common stock Total liabilities and equity 712,000 141,000 27,000 118,000 668,000 253,000 187,000 171,000 105,000 $1,277,000 $ 1,078,000 KELLEY CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold $ 2,185,000 1,324,000 861,000 Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 64,000 602,000 666,000 195,000 59,690 $ 135,310 Additional Information on Current Year Transactions a. Purchased equipment for $49,000 cash. b. Issued 22,000 shares of common stock for $5 cash per share. c. Declared and paid $69,310 in cash dividends. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method.
Kelley Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash KELLEY CORPORATION Comparative Balance Sheets December 31 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ 335,000 118,000 $ 216,000 101,000 546,000 863,000 329,000 (114,000) 624,000 1,077,000 378,000 (178,000) $ 1,277,000 $ 111,000 30,000 $ 1,078,000 $ 91,000 Income taxes payable Total current liabilities Equity Common stock, $2 par value Retained earnings Paid-in capital in excess of par value, common stock Total liabilities and equity 712,000 141,000 27,000 118,000 668,000 253,000 187,000 171,000 105,000 $1,277,000 $ 1,078,000 KELLEY CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold $ 2,185,000 1,324,000 861,000 Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 64,000 602,000 666,000 195,000 59,690 $ 135,310 Additional Information on Current Year Transactions a. Purchased equipment for $49,000 cash. b. Issued 22,000 shares of common stock for $5 cash per share. c. Declared and paid $69,310 in cash dividends. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 31BEB
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning