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The comparative, unclassified statement of financial position for Sunland Ltd. shows the following balances at December 31: Sunland Ltd. Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Land Buildings Accumulated depreciation-buildings Equipment 2021 $ 27,000 26,000 24,000 99.000 526,000 (65,000) 82,000 2020 SO 38,000 50,000 105,000 264,000 (98,000) 44,000

The comparative, unclassified statement of financial position for Sunland Ltd. shows the following balances at December 31: Sunland Ltd. Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Land Buildings Accumulated depreciation-buildings Equipment 2021 $ 27,000 26,000 24,000 99.000 526,000 (65,000) 82,000 2020 SO 38,000 50,000 105,000 264,000 (98,000) 44,000

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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Prepare the statement of cash flows using the indirect method.

Interest payable Dividends payable Bank loan payable-current portion Bank loan payable-non-current portion Common shares Retained earnings Total liabilities and shareholders' equity Liabilities and Shareholders' Equity Bank overdraft Accounts payable Income tax payable 1. 2. 3. 4. 5. 6. $0 $44,000 3,000 4,000 3,000 22,000 377,000 195,000 54,000 $702,000 $8,000 $ 23,000 2,000 Additional information regarding 2021: Net income was $57,000. A gain of $9,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $42,000 was recorded when an old building was sold for $58,000 cash. A new building was purchased for $366,000 and depreciation expense on buildings for the year was $55,000. 5,000 1,000 22,000 206,000 87,000 34,000 $388,000 Equipment costing $63,000 was purchased while a loss of $6,000 was recorded on equipment that was sold for $5,000, The equipment that was sold late in the year had accumulated depreciation of $14,000. The company took out $208,000 of new bank loans during the year. Dividends were declared and paid and no common shares were bought back by the company.
Transcribed Image Text:Interest payable Dividends payable Bank loan payable-current portion Bank loan payable-non-current portion Common shares Retained earnings Total liabilities and shareholders' equity Liabilities and Shareholders' Equity Bank overdraft Accounts payable Income tax payable 1. 2. 3. 4. 5. 6. $0 $44,000 3,000 4,000 3,000 22,000 377,000 195,000 54,000 $702,000 $8,000 $ 23,000 2,000 Additional information regarding 2021: Net income was $57,000. A gain of $9,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $42,000 was recorded when an old building was sold for $58,000 cash. A new building was purchased for $366,000 and depreciation expense on buildings for the year was $55,000. 5,000 1,000 22,000 206,000 87,000 34,000 $388,000 Equipment costing $63,000 was purchased while a loss of $6,000 was recorded on equipment that was sold for $5,000, The equipment that was sold late in the year had accumulated depreciation of $14,000. The company took out $208,000 of new bank loans during the year. Dividends were declared and paid and no common shares were bought back by the company.
The comparative, unclassified statement of financial position for Sunland Ltd. shows the following balances at December 31: Sunland Ltd. Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Liabilities and Shareholders' Equity Bank overdraft Accounts payable Income tax payable Interest payable Dividends payable n. H 2021 $ 27,000 26,000 24,000 99.000 526,000 (65,000) 82,000 (17,000) $702,000 $0 $44,000 3,000 4,000 3,000 2020 $0 38,000 50,000 105,000 264,000 (98,000) 44,000 (15,000) $388,000 $8,000 $23,000 2,000 5,000 1,000
Transcribed Image Text:The comparative, unclassified statement of financial position for Sunland Ltd. shows the following balances at December 31: Sunland Ltd. Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Liabilities and Shareholders' Equity Bank overdraft Accounts payable Income tax payable Interest payable Dividends payable n. H 2021 $ 27,000 26,000 24,000 99.000 526,000 (65,000) 82,000 (17,000) $702,000 $0 $44,000 3,000 4,000 3,000 2020 $0 38,000 50,000 105,000 264,000 (98,000) 44,000 (15,000) $388,000 $8,000 $23,000 2,000 5,000 1,000
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