Homework Help is Here – Start Your Trial Now!
Business
Accounting
The comparative balance sheets and income statements for Gypsy Company follow. Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Balance Sheets As of December 31 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income $39,560 (15,680) 23,880 (3,868) 20,012 450 (70) $20,392 Year 2 $25,114 1,650 6,283 21,976 (10,241) 21,852 $66,634 $2,574 2,942 23,600 37,518 $66,634 Year 1 $2,576 990 5,890 43,746 (17,120) 11,622 $47,704 $4,158 6,724 9,500 27,322 $47,784 Additional Data 1. During Year 2, the company sold equipment for $18,803; it had originally cost $29,100. Accumulated depreciation on this equipment was $10,747 at the time of the sale. Also, the company purchased equipment for $7,330 cash. 2. The company sold land that had cost $3,870. This land was sold for $3,800, resulting in the recognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $14,100 at the time of exchange. 3. Paid dividends of $10,196

The comparative balance sheets and income statements for Gypsy Company follow. Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Balance Sheets As of December 31 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income $39,560 (15,680) 23,880 (3,868) 20,012 450 (70) $20,392 Year 2 $25,114 1,650 6,283 21,976 (10,241) 21,852 $66,634 $2,574 2,942 23,600 37,518 $66,634 Year 1 $2,576 990 5,890 43,746 (17,120) 11,622 $47,704 $4,158 6,724 9,500 27,322 $47,784 Additional Data 1. During Year 2, the company sold equipment for $18,803; it had originally cost $29,100. Accumulated depreciation on this equipment was $10,747 at the time of the sale. Also, the company purchased equipment for $7,330 cash. 2. The company sold land that had cost $3,870. This land was sold for $3,800, resulting in the recognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $14,100 at the time of exchange. 3. Paid dividends of $10,196

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Do not give solution in image 

Cash flows from operating activities: Not income Less: Increases in current assets and decreases in current liabilities: Depreciation expense Proceeds from sale of equipment Proceeds from sale of land. Increase in accounts receivable. Plus: Noncash charges Paid to purchase equipment Plus: Gain on sale of equipment GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Plus: Loss on disposal of land Net cash flow from operating activities Cash flows from investing activities: Proceeds from sale of equipment Paid to purchase equipment Proceeds from sale of land Cash flows from investing activities: Proceeds from sale of equipment Paid to purchase equipment Proceeds from sale of land Net cash flow from investing activities Cash flows from financing activities: Repayment of debt Paid for dividends Net cash flow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance Schedule of noncash investing and financing activities: **0 **** 000 $ 20,392 3,868 (450) (70) (660) 7,330 18,803 x 3,800 18,803 (7,330) 3,800 333 >> >> >> $ 53,013 18,803 (7,330) 3,800 (3,782) (10,196) S 15,273 (13,978) 54,308 2,576 56,884
Transcribed Image Text:Cash flows from operating activities: Not income Less: Increases in current assets and decreases in current liabilities: Depreciation expense Proceeds from sale of equipment Proceeds from sale of land. Increase in accounts receivable. Plus: Noncash charges Paid to purchase equipment Plus: Gain on sale of equipment GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Plus: Loss on disposal of land Net cash flow from operating activities Cash flows from investing activities: Proceeds from sale of equipment Paid to purchase equipment Proceeds from sale of land Cash flows from investing activities: Proceeds from sale of equipment Paid to purchase equipment Proceeds from sale of land Net cash flow from investing activities Cash flows from financing activities: Repayment of debt Paid for dividends Net cash flow from financing activities Net increase in cash Plus: Beginning cash balance Ending cash balance Schedule of noncash investing and financing activities: **0 **** 000 $ 20,392 3,868 (450) (70) (660) 7,330 18,803 x 3,800 18,803 (7,330) 3,800 333 >> >> >> $ 53,013 18,803 (7,330) 3,800 (3,782) (10,196) S 15,273 (13,978) 54,308 2,576 56,884
The comparative balance sheets and income statements for Gypsy Company follow. Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Balance Sheets As of December 31 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income $39,560 (15,680) 23,880 (3,868) 20,012 450 (70) $20,392 Year 2 $25,114 1,650 6,283 21,976 (10,241) 21,852 $66,634 $2,574 2,942 23,600 37,518 $66,634 Year 1 $2,576 990 5,890 43,746 (17,120) 11,622 $47,704 $4,158 6,724 9,500 27,322 $47,784 Additional Data 1. During Year 2, the company sold equipment for $18,803; it had originally cost $29,100. Accumulated depreciation on this equipment was $10,747 at the time of the sale. Also, the company purchased equipment for $7,330 cash. 2. The company sold land that had cost $3,870. This land was sold for $3,800, resulting in the recognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $14,100 at the time of exchange. 3. Paid dividends of $10,196
Transcribed Image Text:The comparative balance sheets and income statements for Gypsy Company follow. Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Balance Sheets As of December 31 Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income $39,560 (15,680) 23,880 (3,868) 20,012 450 (70) $20,392 Year 2 $25,114 1,650 6,283 21,976 (10,241) 21,852 $66,634 $2,574 2,942 23,600 37,518 $66,634 Year 1 $2,576 990 5,890 43,746 (17,120) 11,622 $47,704 $4,158 6,724 9,500 27,322 $47,784 Additional Data 1. During Year 2, the company sold equipment for $18,803; it had originally cost $29,100. Accumulated depreciation on this equipment was $10,747 at the time of the sale. Also, the company purchased equipment for $7,330 cash. 2. The company sold land that had cost $3,870. This land was sold for $3,800, resulting in the recognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $14,100 at the time of exchange. 3. Paid dividends of $10,196
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS