Q#6 The comparative balance sheet of Paton Corporation at Dec 31, 2004 and 2003 is as follows: Assets 2004 2003 Cash 60,900 52,800 Trade receivable 86,100 70,000 Inventory 126,600 136,700 prepaid expense 4,400 3,100 Land 65,000 65,000 Building 381,500 291,500 Accumulated Depreciation- Building (154,600) (143,400) Machinery 300,500 300,500 Accumulated Dep.-machinery (101,200) (71,500) Patents 30,800 38,500 800,000 743,200 Liabilities and stockholder's Equity Account payable 58,800 88,800 Dividends payable 9,400 8,250 Salaries payable 5,000 5,450 Mortgage payable 55,000 ---- Bonds payable ---- 110,000 Common stock 450,000 350,000 Paid-in capital in excess of par 80,000 70,000 Retained earnings 141,800 110,700 800,000 743,200 An examination of the income statement and the accounting records revealed the following additional information applicable to 2004: A mortgage note for Rs. 55,000 was issued for cash 10,000 shares of common stock were issued at 11 in exchange for the bonds payable Cash dividends declared Rs. 35,000. Required: Prepare a statement of cash flow, using the indirect method.
Q#6 The comparative
Assets 2004 2003
|
Cash |
60,900 |
52,800 |
||
|
Trade receivable |
86,100 |
70,000 |
||
|
Inventory |
126,600 |
136,700 |
||
|
prepaid expense |
4,400 |
3,100 |
||
|
Land |
65,000 |
65,000 |
||
|
Building |
381,500 |
291,500 |
||
|
|
(154,600) |
(143,400) |
||
|
Machinery |
300,500 |
300,500 |
||
|
Accumulated Dep.-machinery |
(101,200) |
(71,500) |
||
|
Patents |
30,800 |
38,500 |
||
|
800,000 |
743,200 |
|||
|
Liabilities and |
|
|||
|
Account payable |
58,800 |
88,800 |
|
|
|
Dividends payable |
9,400 |
8,250 |
|
|
|
Salaries payable |
5,000 |
5,450 |
|
|
|
Mortgage payable |
55,000 |
---- |
|
|
|
Bonds payable |
---- |
110,000 |
|
|
|
Common stock |
450,000 |
350,000 |
|
|
|
Paid-in capital in excess of par |
80,000 |
70,000 |
|
|
|
|
141,800 |
110,700 |
|
|
|
800,000 |
743,200 |
|
An examination of the income statement and the accounting records revealed the following additional information applicable to 2004:
- A mortgage note for Rs. 55,000 was issued for cash
- 10,000 shares of common stock were issued at 11 in exchange for the bonds payable
- Cash dividends declared Rs. 35,000.
Required: Prepare a statement of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
