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The comparative balance sheets for Larkspur Corporation appear below: LARKSPUR CORPORATION Comparative Balance Sheet Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation Total assets Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity Assets 2022 $58,000 85,000 27,800 19,500 70,500 (19,100 ) $241,700 $19,700 29,700 145,000 47,300 $241,700 2021 $31,500 61,500 16,900 59,500 69,500 (11,800 ) $227,100 $6,200 16,800 115,000 89,100 $227,100

The comparative balance sheets for Larkspur Corporation appear below: LARKSPUR CORPORATION Comparative Balance Sheet Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation Total assets Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity Assets 2022 $58,000 85,000 27,800 19,500 70,500 (19,100 ) $241,700 $19,700 29,700 145,000 47,300 $241,700 2021 $31,500 61,500 16,900 59,500 69,500 (11,800 ) $227,100 $6,200 16,800 115,000 89,100 $227,100

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The comparative balance sheets for Larkspur Corporation appear below: LARKSPUR CORPORATION Comparative Balance Sheet Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation Total assets Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity Assets 2022 $58,000 85,000 27,800 19,500 70,500 (19,100 $241,700 $19,700 29,700 145,000 47,300 $241,700 2021 $31,500 61,500 16,900 59,500 69,500 (11,800 ) $227,100 $6,200 16,800 115,000 89,100 $227,100
Transcribed Image Text:The comparative balance sheets for Larkspur Corporation appear below: LARKSPUR CORPORATION Comparative Balance Sheet Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation Total assets Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity Assets 2022 $58,000 85,000 27,800 19,500 70,500 (19,100 $241,700 $19,700 29,700 145,000 47,300 $241,700 2021 $31,500 61,500 16,900 59,500 69,500 (11,800 ) $227,100 $6,200 16,800 115,000 89,100 $227,100
Additional information: 1. 2. 3. 4. 5. 6. Net loss for 2022 is $12,000. Net sales for 2022 are $320,000. Cash dividends of $16,200 were declared and paid in 2022. Land was sold for cash at a loss of $3,400. This was the only land transaction during the year. Equipment with a cost of $16,000 and accumulated depreciation of $10,200 was sold for $5,200 cash. $13,000 of bonds were retired during the year at carrying (book) value. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter O for amounts.)
Transcribed Image Text:Additional information: 1. 2. 3. 4. 5. 6. Net loss for 2022 is $12,000. Net sales for 2022 are $320,000. Cash dividends of $16,200 were declared and paid in 2022. Land was sold for cash at a loss of $3,400. This was the only land transaction during the year. Equipment with a cost of $16,000 and accumulated depreciation of $10,200 was sold for $5,200 cash. $13,000 of bonds were retired during the year at carrying (book) value. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter O for amounts.)
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