The net changes in the balance sheet accounts of Amy Corporation for the year 2021 are shown below. Account Debit Credit Cash $ 103,530 Short-term investments $143,990 Accounts receivable 93,058 Allowance for doubtful accounts 15,827 Inventory 88,298 Prepaid expenses 27,132 Investment in subsidiary (equity method) 29,750 Plant and equipment 249,900 Accumulated depreciation 154,700 Accounts payable 96,033 Accrued liabilities 25,585 Deferred tax liability 18,445 8% serial bonds 83,300 Common stock, $10 par 107,100 Additional paid-in capital 178,500 Retained earnings—Appropriation for bonded indebtedness 71,400 Retained earnings—Unappropriated 45,220 $765,884 $765,884 An analysis of the Retained Earnings—Unappropriated account follows: Retained earnings unappropriated, December 31, 2020 $1,547,000 Add: Net income 365,330 Transfer from appropriation for bonded indebtedness 71,400 Total $1,983,730 Deduct: Cash dividends $196,350 Stock dividend 285,600 481,950 Retained earnings unappropriated, December 31, 2021 $1,501,780 1. On January 2, 2021 short-term investments (classified as available-for-sale) costing $143,990 were sold for $184,450. 2. The company paid a cash dividend on February 1, 2021. 3. Accounts receivable of $19,278 and $23,086 were considered uncollectible and written off in 2021 and 2020, respectively. 4. Major repairs of $39,270 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2021. 5. The wholly owned subsidiary reported a net loss for the year of $29,750. The loss was recorded by the parent. 6. At January 1, 2021, the cash balance was $197,540. Prepare a statement of cash flows (indirect method) for the year ended December 31, 2021. Amy Corporation has no securities which are classified as cash equivalents

The net changes in the balance sheet accounts of Amy Corporation for the year 2021 are shown below. Account Debit Credit Cash $ 103,530 Short-term investments $143,990 Accounts receivable 93,058 Allowance for doubtful accounts 15,827 Inventory 88,298 Prepaid expenses 27,132 Investment in subsidiary (equity method) 29,750 Plant and equipment 249,900 Accumulated depreciation 154,700 Accounts payable 96,033 Accrued liabilities 25,585 Deferred tax liability 18,445 8% serial bonds 83,300 Common stock, $10 par 107,100 Additional paid-in capital 178,500 Retained earnings—Appropriation for bonded indebtedness 71,400 Retained earnings—Unappropriated 45,220 $765,884 $765,884 An analysis of the Retained Earnings—Unappropriated account follows: Retained earnings unappropriated, December 31, 2020 $1,547,000 Add: Net income 365,330 Transfer from appropriation for bonded indebtedness 71,400 Total $1,983,730 Deduct: Cash dividends $196,350 Stock dividend 285,600 481,950 Retained earnings unappropriated, December 31, 2021 $1,501,780 1. On January 2, 2021 short-term investments (classified as available-for-sale) costing $143,990 were sold for $184,450. 2. The company paid a cash dividend on February 1, 2021. 3. Accounts receivable of $19,278 and $23,086 were considered uncollectible and written off in 2021 and 2020, respectively. 4. Major repairs of $39,270 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2021. 5. The wholly owned subsidiary reported a net loss for the year of $29,750. The loss was recorded by the parent. 6. At January 1, 2021, the cash balance was $197,540. Prepare a statement of cash flows (indirect method) for the year ended December 31, 2021. Amy Corporation has no securities which are classified as cash equivalents

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 net changes in the balance sheet accounts of Amy Corporation for the year 2021 are shown below.

Account	Debit	Credit
Cash	$ 103,530
Short-term investments		$143,990
Accounts receivable	93,058
Allowance for doubtful accounts		15,827
Inventory	88,298
Prepaid expenses		27,132
Investment in subsidiary (equity method)		29,750
Plant and equipment	249,900
Accumulated depreciation		154,700
Accounts payable	96,033
Accrued liabilities		25,585
Deferred tax liability	18,445
8% serial bonds		83,300
Common stock, $10 par		107,100
Additional paid-in capital		178,500
Retained earnings—Appropriation for bonded indebtedness	71,400
Retained earnings—Unappropriated	45,220
	$765,884	$765,884

An analysis of the Retained Earnings—Unappropriated account follows:
Retained earnings unappropriated, December 31, 2020			$1,547,000
Add:	Net income			365,330
	Transfer from appropriation for bonded indebtedness			71,400
	Total			$1,983,730
Deduct:	Cash dividends	$196,350
	Stock dividend	285,600		481,950
Retained earnings unappropriated, December 31, 2021			$1,501,780

1.		On January 2, 2021 short-term investments (classified as available-for-sale) costing $143,990 were sold for $184,450.
2.		The company paid a cash dividend on February 1, 2021.
3.		Accounts receivable of $19,278 and $23,086 were considered uncollectible and written off in 2021 and 2020, respectively.
4.		Major repairs of $39,270 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2021.
5.		The wholly owned subsidiary reported a net loss for the year of $29,750. The loss was recorded by the parent.
6.		At January 1, 2021, the cash balance was $197,540.

Prepare a statement of cash flows (indirect method) for the year ended December 31, 2021. Amy Corporation has no securities which are classified as cash equivalents

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