The balance sheet data of Kohler Company at the end of 2021 and 2020 follow: 2021 2020 Cash $ 100,000 $ 140,000 Accounts receivable (net) 240,000 180,000 Inventory 280,000 180,000 Prepaid expenses 40,000 100,000 Buildings and equipment 360,000 300,000 Accumulated depreciation–buildings and equipment (72,000) (32,000) Land 360,000 160,000 Totals $1,308,000 $1,028,000 Accounts payable $272,000 $220,000 Accrued expenses 48,000 72,000 Notes payable–bank, long-term 160,000 Mortgage payable 120,000 Common stock, $10 par 836,000 636,000 Retained earnings (deficit) 32,000 (60,000) $1,308,000 $1,028,000 Land was acquired for $200,000 in exchange for common stock, par $200,000, during the year; all equipment purchased was for cash. Equipment costing $20,000 was sold for $8,000; book value of the equipment was $16,000 and the loss was reported as an ordinary item in net income. Cash dividends of $30,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 2021, for Kohler Company:
The balance sheet data of Kohler Company at the end of 2021 and 2020 follow: 2021 2020 Cash $ 100,000 $ 140,000 Accounts receivable (net) 240,000 180,000 Inventory 280,000 180,000 Prepaid expenses 40,000 100,000 Buildings and equipment 360,000 300,000 Accumulated depreciation–buildings and equipment (72,000) (32,000) Land 360,000 160,000 Totals $1,308,000 $1,028,000 Accounts payable $272,000 $220,000 Accrued expenses 48,000 72,000 Notes payable–bank, long-term 160,000 Mortgage payable 120,000 Common stock, $10 par 836,000 636,000 Retained earnings (deficit) 32,000 (60,000) $1,308,000 $1,028,000 Land was acquired for $200,000 in exchange for common stock, par $200,000, during the year; all equipment purchased was for cash. Equipment costing $20,000 was sold for $8,000; book value of the equipment was $16,000 and the loss was reported as an ordinary item in net income. Cash dividends of $30,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of cash flows for the year ended December 31, 2021, for Kohler Company:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The balance sheet data of Kohler Company at the end of 2021 and 2020 follow:
Land was acquired for $200,000 in exchange for common stock, par $200,000, during the year; all equipment purchased was for cash. Equipment costing $20,000 was sold for $8,000; book value of the equipment was $16,000 and the loss was reported as an ordinary item in net income. Cash dividends of $30,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement ofcash flows for the year ended December 31, 2021, for Kohler Company:
| 2021 | 2020 |
| Cash | $ 100,000 | $ 140,000 |
| 240,000 | 180,000 |
| Inventory | 280,000 | 180,000 |
| Prepaid expenses | 40,000 | 100,000 |
| Buildings and equipment | 360,000 | 300,000 |
| (72,000) | (32,000) |
| Land | 360,000 | 160,000 |
| Totals | $1,308,000 | $1,028,000 |
| Accounts payable | $272,000 | $220,000 |
| Accrued expenses | 48,000 | 72,000 |
| Notes payable–bank, long-term | 160,000 |
| Mortgage payable | 120,000 |
| Common stock, $10 par | 836,000 | 636,000 |
| 32,000 | (60,000) |
| $1,308,000 | $1,028,000 |
Land was acquired for $200,000 in exchange for common stock, par $200,000, during the year; all equipment purchased was for cash. Equipment costing $20,000 was sold for $8,000; book value of the equipment was $16,000 and the loss was reported as an ordinary item in net income. Cash dividends of $30,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. In the statement of
The net cash provided (used) by financing activities was
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