The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: 1 Dec. 31, 20Y2 Dec. 31, 20Y1 2 Assets 3 Cash $917,060.00 $964,640.00 4 Accounts receivable (net) 828,490.00 761,370.00 5 Inventories 1,269,190.00 1,161,990.00 6 Prepaid expenses 30,160.00 34,400.00 7 Land 316,470.00 480,110.00 8 Buildings 1,463,160.00 900,900.00 9 Accumulated depreciation-buildings (408,380.00) (381,900.00) 10 Equipment 511,860.00 454,790.00 11 Accumulated depreciation-equipment (141,520.00) (159,060.00) 12 Total assets $4,786,490.00 $4,217,240.00 13 Liabilities and Stockholders’ Equity 14 Accounts payable (merchandise creditors) $922,800.00 $958,260.00 15 Bonds payable 270,000.00 0.00 16 Common stock, $25 par 327,000.00 117,000.00 17 Excess of paid-in capital over par 752,200.00 559,000.00 18 Retained earnings 2,514,490.00 2,582,980.00 19 Total liabilities and stockholders’ equity $4,786,490.00 $4,217,240.00 The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 480,110 Apr. 20 Realized $151,080 cash from sale 163,640 316,470 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 562,260 1,463,160 ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 381,900 Dec. 31 Depreciation for year 26,480 408,380 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 454,790 26 Discarded, no salvage 47,490 407,300 Aug. 11 Purchased for cash 104,560 511,860 ACCOUNT Accumulated Depreciation ––Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 159,060 26 Equipment discarded 47,490 111,570 Dec. 31 Depreciation for year 29,950 141,520 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 270,000 270,000 ACCOUNT Common Stock $25 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 117,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 210,000 327,000 ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 559,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 193,200 752,200 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,582,980 Dec. 31 Net loss 36,020 2,546,960 31 Cash dividends 32,470 2,514,490 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: 1 Dec. 31, 20Y2 Dec. 31, 20Y1 2 Assets 3 Cash $917,060.00 $964,640.00 4 Accounts receivable (net) 828,490.00 761,370.00 5 Inventories 1,269,190.00 1,161,990.00 6 Prepaid expenses 30,160.00 34,400.00 7 Land 316,470.00 480,110.00 8 Buildings 1,463,160.00 900,900.00 9 Accumulated depreciation-buildings (408,380.00) (381,900.00) 10 Equipment 511,860.00 454,790.00 11 Accumulated depreciation-equipment (141,520.00) (159,060.00) 12 Total assets $4,786,490.00 $4,217,240.00 13 Liabilities and Stockholders’ Equity 14 Accounts payable (merchandise creditors) $922,800.00 $958,260.00 15 Bonds payable 270,000.00 0.00 16 Common stock, $25 par 327,000.00 117,000.00 17 Excess of paid-in capital over par 752,200.00 559,000.00 18 Retained earnings 2,514,490.00 2,582,980.00 19 Total liabilities and stockholders’ equity $4,786,490.00 $4,217,240.00 The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 480,110 Apr. 20 Realized $151,080 cash from sale 163,640 316,470 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 562,260 1,463,160 ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 381,900 Dec. 31 Depreciation for year 26,480 408,380 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 454,790 26 Discarded, no salvage 47,490 407,300 Aug. 11 Purchased for cash 104,560 511,860 ACCOUNT Accumulated Depreciation ––Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 159,060 26 Equipment discarded 47,490 111,570 Dec. 31 Depreciation for year 29,950 141,520 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 270,000 270,000 ACCOUNT Common Stock $25 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 117,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 210,000 327,000 ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 559,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 193,200 752,200 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,582,980 Dec. 31 Net loss 36,020 2,546,960 31 Cash dividends 32,470 2,514,490 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
|
1
|
|
Dec. 31, 20Y2
|
Dec. 31, 20Y1
|
|
2
|
Assets
|
|
|
|
3
|
Cash
|
$917,060.00
|
$964,640.00
|
|
4
|
|
828,490.00
|
761,370.00
|
|
5
|
Inventories
|
1,269,190.00
|
1,161,990.00
|
|
6
|
Prepaid expenses
|
30,160.00
|
34,400.00
|
|
7
|
Land
|
316,470.00
|
480,110.00
|
|
8
|
Buildings
|
1,463,160.00
|
900,900.00
|
|
9
|
|
(408,380.00)
|
(381,900.00)
|
|
10
|
Equipment
|
511,860.00
|
454,790.00
|
|
11
|
Accumulated depreciation-equipment
|
(141,520.00)
|
(159,060.00)
|
|
12
|
Total assets
|
$4,786,490.00
|
$4,217,240.00
|
|
13
|
Liabilities and
|
|
|
|
14
|
Accounts payable (merchandise creditors)
|
$922,800.00
|
$958,260.00
|
|
15
|
Bonds payable
|
270,000.00
|
0.00
|
|
16
|
Common stock, $25 par
|
327,000.00
|
117,000.00
|
|
17
|
Excess of paid-in capital over par
|
752,200.00
|
559,000.00
|
|
18
|
|
2,514,490.00
|
2,582,980.00
|
|
19
|
Total liabilities and stockholders’ equity
|
$4,786,490.00
|
$4,217,240.00
|
The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2 are as follows:
ACCOUNT Land
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 480,110 | |||
| Apr. | 20 | Realized $151,080 cash from sale | 163,640 | 316,470 |
ACCOUNT Buildings
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 900,900 | |||
| Apr. | 20 | Acquired for cash | 562,260 | 1,463,160 |
ACCOUNT Accumulated Depreciation––Buildings
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 381,900 | |||
| Dec. | 31 | Depreciation for year | 26,480 | 408,380 |
ACCOUNT Equipment
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 454,790 | |||
| 26 | Discarded, no salvage | 47,490 | 407,300 | |||
| Aug. | 11 | Purchased for cash | 104,560 | 511,860 |
ACCOUNT Accumulated Depreciation ––Equipment
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 159,060 | |||
| 26 | Equipment discarded | 47,490 | 111,570 | |||
| Dec. | 31 | Depreciation for year | 29,950 | 141,520 |
ACCOUNT Bonds Payable
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| May | 1 | Issued 20-year bonds | 270,000 | 270,000 |
ACCOUNT Common Stock $25 par
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 117,000 | |||
| Dec. | 7 | Issued 8,400 shares of common stock for $48 per share | 210,000 | 327,000 |
ACCOUNT Paid-In Capital in Excess of Par––Common Stock
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 559,000 | |||
| Dec. | 7 | Issued 8,400 shares of common stock for $48 per share | 193,200 | 752,200 |
ACCOUNT Retained Earnings
| ACCOUNT NO. | ||||||
| Balance | ||||||
| Date | Item | Debit | Credit | Debit | Credit | |
| 20Y2 | ||||||
| Jan. | 1 | Balance | 2,582,980 | |||
| Dec. | 31 | Net loss | 36,020 | 2,546,960 | ||
| 31 | Cash dividends | 32,470 | 2,514,490 |
Required:
| Prepare a statement of |
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