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The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income dditional Information 2021 $ 73,100 101,000 87,800 6,800 268,700 148,000 (39,000) $ 377,700 $ 49,000 8,400 5,800 63,200 34,800 98,000 268,000 11,700 $ 377,700 $ 798,000 435,000 363,000 91,000 82,600 189,400 4,400 193,800 46,290 $147,510 2020 $ 68,000 75,000 122,500 10,200 275,700 139,000 (21,000) $ 393,700 $ 66,000 19,800 8,600 94,400 84,000 178,400 184,000 31,300 $ 393,700

The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income dditional Information 2021 $ 73,100 101,000 87,800 6,800 268,700 148,000 (39,000) $ 377,700 $ 49,000 8,400 5,800 63,200 34,800 98,000 268,000 11,700 $ 377,700 $ 798,000 435,000 363,000 91,000 82,600 189,400 4,400 193,800 46,290 $147,510 2020 $ 68,000 75,000 122,500 10,200 275,700 139,000 (21,000) $ 393,700 $ 66,000 19,800 8,600 94,400 84,000 178,400 184,000 31,300 $ 393,700

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 following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities. Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information. 2021 $ 73,100 101,000 87,800 6,800 268,700 148,000 (39,000) $ 377,700 $ 49,000 8,400 5,800 63,200 34,800 98,000 268,000 11,700 $ 377,700 $ 798,000 435,000 363,000 91,000 82,600 189,400 4,400 193,800 46,290 $ 147,510 2020 $ 68,000 75,000 122,500 10,200 275,700 139,000 (21,000) $ 393,700 $ 66,000 19,800 8,600 94,400 84,000 178,400 184,000 31,300 $ 393,700 a. A $49,200 note payable is retired at its $49,200 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. Note: Amounts to be deducted should be indicated with a minus sign.
Transcribed Image Text:The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities. Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information. 2021 $ 73,100 101,000 87,800 6,800 268,700 148,000 (39,000) $ 377,700 $ 49,000 8,400 5,800 63,200 34,800 98,000 268,000 11,700 $ 377,700 $ 798,000 435,000 363,000 91,000 82,600 189,400 4,400 193,800 46,290 $ 147,510 2020 $ 68,000 75,000 122,500 10,200 275,700 139,000 (21,000) $ 393,700 $ 66,000 19,800 8,600 94,400 84,000 178,400 184,000 31,300 $ 393,700 a. A $49,200 note payable is retired at its $49,200 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. Note: Amounts to be deducted should be indicated with a minus sign.
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