Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021
Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 27BE
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![Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021
using the following info:
Income Statement
Sales Revenue
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Operating income
Other revenues and losses
Loss on sale of equipment
Gain on sale of building
Total other revenues and losses
Income before income taxes
Income tax expense
Net Income
Comparative Balar
Account
Cash
Accounts Receivable
Inventory
Accounts Payable
Salaries Payable
$1,100,000
600,000
500,000
100,000
20,000
380,000
(10,000)
20,000
10,000
$ 480,000
96,000
$384,000
Sheets (selected accounts)
2021
$ 568,000
60,000
20,000
30,000
6,000
2020
$80,000
30,000
45,000
50,000
2,000
Other information:
1. Equipment was sold for $5,000 cash that resulted in a loss of $10,000 as noted above in
the Income Statement info.
2. A building was sold for $150,000 cash that resulted in a gain of $20,000 as noted above
in the income statement info.
3. Equipment was purchased costing $50,000. A down payment was made for $20,000
cash and the company issued a note's payable for the remaining balance.
4. Equipment was purchased costing $30,000 and was paid with cash.
5. A cash dividend was declared and paid in 2021 of $40,000.
6. A $60,000 cash dividend was declared in December 2021 payable in January 2022.
7. A 5% stock dividend was issued in 2021. Retained earnings was debited for $50,000.
8. 1,000 shares of $10 par common stock was issued in 2021 in exchange for equipment.
The cost recorded for the equipment was $50,000.
9. 1,000 shares of common stock were issued in 2021 for $100,000 cash.
10. The company purchased shares of its own stock as Treasury Stock and paid $50,000
cash.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1f2fac05-bac4-4133-acae-5b97f965cfbb%2Ff53c4232-118a-4cb8-ba41-fa4a58350337%2Feejx51_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare a Statement of Cash Flows for The Dr. J Co. for the period ending December 31, 2021
using the following info:
Income Statement
Sales Revenue
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Operating income
Other revenues and losses
Loss on sale of equipment
Gain on sale of building
Total other revenues and losses
Income before income taxes
Income tax expense
Net Income
Comparative Balar
Account
Cash
Accounts Receivable
Inventory
Accounts Payable
Salaries Payable
$1,100,000
600,000
500,000
100,000
20,000
380,000
(10,000)
20,000
10,000
$ 480,000
96,000
$384,000
Sheets (selected accounts)
2021
$ 568,000
60,000
20,000
30,000
6,000
2020
$80,000
30,000
45,000
50,000
2,000
Other information:
1. Equipment was sold for $5,000 cash that resulted in a loss of $10,000 as noted above in
the Income Statement info.
2. A building was sold for $150,000 cash that resulted in a gain of $20,000 as noted above
in the income statement info.
3. Equipment was purchased costing $50,000. A down payment was made for $20,000
cash and the company issued a note's payable for the remaining balance.
4. Equipment was purchased costing $30,000 and was paid with cash.
5. A cash dividend was declared and paid in 2021 of $40,000.
6. A $60,000 cash dividend was declared in December 2021 payable in January 2022.
7. A 5% stock dividend was issued in 2021. Retained earnings was debited for $50,000.
8. 1,000 shares of $10 par common stock was issued in 2021 in exchange for equipment.
The cost recorded for the equipment was $50,000.
9. 1,000 shares of common stock were issued in 2021 for $100,000 cash.
10. The company purchased shares of its own stock as Treasury Stock and paid $50,000
cash.
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