statement of financial position: Fearsome Company showed the following comparative Problem 17-5 (AICPA Adapted) Investment in Hall Company at equity 2021 2020 Cash and cash equivalents Accounts receivable, net of allowance 2,350,000 600,000 1,000,000 2,200,000 2,000,000 5,000,000 ( 1,050,000) ( 800,000) 400,000 350,000 700,000 850,000 2,000,000 1,500,000 4,000,000 Inventory Land Property, plant and equipment Accumulated depreciation Goodwill 400,000 12,500,000 9,000,000 Accounts payable Note payable- long term Bonds payable Share capital, P100 par Share premium Retained earnings Treasury shares, at cost 600,000 500,000 1,600,000 5,250,000 2,700,000 1,850,000 550,000 2,100,000 4,000,000 1,750,000 1,300,000 ( 700,000) 12,500,000 9,000,000 Additional information for 2021 1. The net income for the current year was P3,050,000. 2. Cash dividend paid amounted to P2,500,000. 3. The entity sold equipment costing P200,000, with carrying amount of P50,000, for P70,000 cash. 4. The entity issued 10,000 shares of capital for P150 per share cash. 5. The entity sold all of its treasury shares for P900,000 cash. 6. Individuals holding bonds with face amount of P500,000 exercised their conversion privilege. Each of the 500 bonds was converted into 5 shares of capital. 1. The entity purchased equipment for P1,200,000. 8. Land with a fair value of P500,000 was purchased through the issuance of a long term note. Required: Prepare a statement of cash flows for the current year.
statement of financial position: Fearsome Company showed the following comparative Problem 17-5 (AICPA Adapted) Investment in Hall Company at equity 2021 2020 Cash and cash equivalents Accounts receivable, net of allowance 2,350,000 600,000 1,000,000 2,200,000 2,000,000 5,000,000 ( 1,050,000) ( 800,000) 400,000 350,000 700,000 850,000 2,000,000 1,500,000 4,000,000 Inventory Land Property, plant and equipment Accumulated depreciation Goodwill 400,000 12,500,000 9,000,000 Accounts payable Note payable- long term Bonds payable Share capital, P100 par Share premium Retained earnings Treasury shares, at cost 600,000 500,000 1,600,000 5,250,000 2,700,000 1,850,000 550,000 2,100,000 4,000,000 1,750,000 1,300,000 ( 700,000) 12,500,000 9,000,000 Additional information for 2021 1. The net income for the current year was P3,050,000. 2. Cash dividend paid amounted to P2,500,000. 3. The entity sold equipment costing P200,000, with carrying amount of P50,000, for P70,000 cash. 4. The entity issued 10,000 shares of capital for P150 per share cash. 5. The entity sold all of its treasury shares for P900,000 cash. 6. Individuals holding bonds with face amount of P500,000 exercised their conversion privilege. Each of the 500 bonds was converted into 5 shares of capital. 1. The entity purchased equipment for P1,200,000. 8. Land with a fair value of P500,000 was purchased through the issuance of a long term note. Required: Prepare a statement of cash flows for the current year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 17-5 (AICPA Adapted)
Investment in Hall Company at equity
statement of financial position:
Accounts receivable, net of allowance
Fearsome Company showed the following comparative
2021
2020
Cash and cash equivalents
2,350,000
600,000
1,000,000
2,200,000
2,000,000
5,000,000
1,050,000) ( 800,000)
400,000
350,000
700,000
850,000
2,000,000
1,500,000
4,000,000
Inventory
Land
Property, plant and equipment.
Accumulated depreciation
Goodwill
400,000
12,500,000
9,000,000
Accounts payable
Note payable - long term
Bonds payable
Share capital, P100 par
Share premium
Retained earnings
Treasury shares, at cost
600,000
500,000
1,600,000
5,250,000
2,700,000
1,850,000
550,000
2,100,000
4,000,000
1,750,000
1,300,000
700,000)
12,500,000
9,000,000
Additional information for 2021
1. The net income for the current year was P3,050,000.
2. Cash dividend paid amounted to P2,500,000.
3. The entity sold equipment costing P200,000, with carrying
amount of P50,000, for P70,000 cash.
4. The entity issued 10,000 shares of capital for P150
cash.
per
share
5. The entity sold all of its treasury shares for P900,000 cash.
6. Individuals holding bonds with face amount of P500,000
exercised their conversion privilege. Each of the 500 bonds
was converted into 5 shares of capital.
. The entity purchased equipment for P1,200,000.
8. Land with a fair value of P500,000 was purchased through
the issuance of a long term note.
Required:
Prepare
a statement of cash flows for the current year.
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