Philly Corporation Philly Corporation Income Statement Comparative Account Information Relating to Operations For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 2020 2019 Sales Revenue 680,000 Accounts receivable -net 78,000 65,000 Cost of goods sold 355,000 Prepaid insurance 5,000 6,000 Salaries expense 50,000 Equipment 111,100 122,400 Depreciation expense equipment 6,800 Accumulated Depreciation 13,800 14,600 Interest expense 8,000 Land 56,000 36,000 Bad debt expense 2,400 Accounts Payable 59,000 47,000 Loss on sale of equipment 4,800 Interest payable 600 1,500 Miscellaneous expenses 900 Income taxes payable 4,200 6,000 Income taxes 65,525 Unearned Revenues 20,000 14,000 Net income 186,575 Additional information: Equipment whose original cost was $33,000 was sold in 2020 The allowance for doubtful accounts was $3,500 and $3,900 as of December 31, 2019 and 2020 respectively Shares with a fair market value of $3,500 were issued in exchange for land. Required- a) Prepare the cash flow of operations using the direct method. b) Prepare the cash from investing section of the cash flow statement.

Philly Corporation Philly Corporation Income Statement Comparative Account Information Relating to Operations For the Year Ended December 31, 2020 For the Year Ended December 31, 2020 2020 2019 Sales Revenue 680,000 Accounts receivable -net 78,000 65,000 Cost of goods sold 355,000 Prepaid insurance 5,000 6,000 Salaries expense 50,000 Equipment 111,100 122,400 Depreciation expense equipment 6,800 Accumulated Depreciation 13,800 14,600 Interest expense 8,000 Land 56,000 36,000 Bad debt expense 2,400 Accounts Payable 59,000 47,000 Loss on sale of equipment 4,800 Interest payable 600 1,500 Miscellaneous expenses 900 Income taxes payable 4,200 6,000 Income taxes 65,525 Unearned Revenues 20,000 14,000 Net income 186,575 Additional information: Equipment whose original cost was $33,000 was sold in 2020 The allowance for doubtful accounts was $3,500 and $3,900 as of December 31, 2019 and 2020 respectively Shares with a fair market value of $3,500 were issued in exchange for land. Required- a) Prepare the cash flow of operations using the direct method. b) Prepare the cash from investing section of the cash flow statement.

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


Philly Corporation		Philly Corporation
Income Statement		Comparative Account Information Relating to Operations
For the Year Ended December 31, 2020		For the Year Ended December 31, 2020
				2020	2019
Sales Revenue	680,000		Accounts receivable -net	78,000	65,000
Cost of goods sold	355,000		Prepaid insurance	5,000	6,000
Salaries expense	50,000		Equipment	111,100	122,400
Depreciation expense equipment	6,800		Accumulated Depreciation	13,800	14,600
Interest expense	8,000		Land	56,000	36,000
Bad debt expense	2,400		Accounts Payable	59,000	47,000
Loss on sale of equipment	4,800		Interest payable	600	1,500
Miscellaneous expenses	900		Income taxes payable	4,200	6,000
Income taxes	65,525		Unearned Revenues	20,000	14,000
Net income	186,575

Additional information:
Equipment whose original cost was $33,000 was sold in 2020
The allowance for doubtful accounts was $3,500 and $3,900 as of December 31, 2019 and 2020 respectively
Shares with a fair market value of $3,500 were issued in exchange for land.

Required-
a) Prepare the cash flow of operations using the direct method.
b) Prepare the cash from investing section of the cash flow statement.

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions