Preparation of statement of cash flow and a statement of financial position   Land $30.000 Bond payable 100.000 Bulding 120.000 Current Liabilities 150.000 Equipment 90.000 Share capital (ordinary) 180.000 Acc.depreciation bulding (30.000) Retained earnings 44.000 Acc. Depreciation building (11.000) Totaal 474.000 Patents 40.000 Current asset 235.000 Total 474.000   The following information is available for 2019 Net income was $ 55,000 Equipment cost 20,000 and aqumulated depreciation $ 8,000 was sold for $9,000 Depreciation expense was %4,000 on the building and $9,000 for equipment Patent amortize cost was $ 2,500 Currrent asset other than cash is increase by $25,000. Current liabilities increases by $ 13,000 An additional to the building was completed at a cost $16,000 Bonds payable  of $50,000 were issued A long term investment in debt securities was purchased for $ 16,000 Cash devident of $25,000 were declared and paid Treasury shares were purchased at a cost $ 11,000 Instruction :  Prepare a statement of cash flows for 2019 Prepare a statement of financial position at december 2019

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Preparation of statement of cash flow and a statement of financial position

 

Land $30.000 Bond payable 100.000

Bulding 120.000 Current Liabilities 150.000

Equipment 90.000 Share capital (ordinary) 180.000

Acc.depreciation bulding (30.000) Retained earnings 44.000

Acc. Depreciation building (11.000) Totaal 474.000

Patents 40.000

Current asset 235.000

Total 474.000

 

The following information is available for 2019

  1. Net income was $ 55,000
  2. Equipment cost 20,000 and aqumulated depreciation $ 8,000 was sold for $9,000
  3. Depreciation expense was %4,000 on the building and $9,000 for equipment
  4. Patent amortize cost was $ 2,500
  5. Currrent asset other than cash is increase by $25,000. Current liabilities increases by $ 13,000
  6. An additional to the building was completed at a cost $16,000
  7. Bonds payable  of $50,000 were issued
  8. A long term investment in debt securities was purchased for $ 16,000
  9. Cash devident of $25,000 were declared and paid
  10. Treasury shares were purchased at a cost $ 11,000

Instruction : 

  1. Prepare a statement of cash flows for 2019
  2. Prepare a statement of financial position at december 2019
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