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.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 14E
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Transcribed Image Text: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.
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