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The net changes in the balance sheet accounts of ESPN, Inc. for the year 2021 are shown below: Account Debit $ 100,600 Cash Accounts receivable Allowance for doubtful accounts 197,200 Inventory Prepaid expenses Long-term investments Land 405,000 Buildings 650,000 20,000 Credit $ 64,000 144,000 10,000

The net changes in the balance sheet accounts of ESPN, Inc. for the year 2021 are shown below: Account Debit $ 100,600 Cash Accounts receivable Allowance for doubtful accounts 197,200 Inventory Prepaid expenses Long-term investments Land 405,000 Buildings 650,000 20,000 Credit $ 64,000 144,000 10,000

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 a statement of cash flows (indirect method). Ignore tax effects.
### ESPN, Inc. Balance Sheet Changes 2021 **Account Changes Summary:** **Debits:** - **Cash:** $100,600 - **Accounts Receivable:** $64,000 - **Inventory:** $197,200 - **Prepaid Expenses:** $20,000 - **Land:** $405,000 - **Buildings:** $650,000 - **Machinery:** $100,000 - **Equipment:** $28,000 **Credits:** - **Allowance for Doubtful Accounts:** $10,000 - **Long-term Investments:** $144,000 - **Accumulated Depreciation:** - Buildings: $24,000 - Machinery: $20,000 - Equipment: $12,000 - **Accounts Payable:** $183,200 - **Accrued Liabilities:** $72,000 - **Dividends Payable:** $128,000 - **Premium on Bonds:** $36,000 - **Bonds Payable:** $900,000 - **Preferred Stock ($50 par):** $70,000 - **Common Stock ($10 par):** $156,000 - **Additional Paid-in Capital—Common:** $223,200 - **Retained Earnings:** $67,200 **Total Debits and Credits:** - **Debits:** $1,805,200 - **Credits:** $1,805,200 **Additional Information:** 1. **Net Income for 2021:** $160,000 2. **Cash Dividends:** $128,000 declared on December 15, 2021, payable on January 15, 2022. A 5% stock dividend was issued on March 31, 2021, with a market value of $22.00 per share. 3. **Sale of Long-term Investments:** Sold for $140,000. 4. **Sale of Building and Land:** Cost $480,000, book value $350,000, sold for $400,000. Land cost was $20,000. 5. **Machinery Exchange Entry:** - Machinery: $160,000 - Accumulated Depreciation—Machinery: $40,000 - Machinery: $60,000 - Cash: $140,000 6. **Write
Transcribed Image Text:### ESPN, Inc. Balance Sheet Changes 2021 **Account Changes Summary:** **Debits:** - **Cash:** $100,600 - **Accounts Receivable:** $64,000 - **Inventory:** $197,200 - **Prepaid Expenses:** $20,000 - **Land:** $405,000 - **Buildings:** $650,000 - **Machinery:** $100,000 - **Equipment:** $28,000 **Credits:** - **Allowance for Doubtful Accounts:** $10,000 - **Long-term Investments:** $144,000 - **Accumulated Depreciation:** - Buildings: $24,000 - Machinery: $20,000 - Equipment: $12,000 - **Accounts Payable:** $183,200 - **Accrued Liabilities:** $72,000 - **Dividends Payable:** $128,000 - **Premium on Bonds:** $36,000 - **Bonds Payable:** $900,000 - **Preferred Stock ($50 par):** $70,000 - **Common Stock ($10 par):** $156,000 - **Additional Paid-in Capital—Common:** $223,200 - **Retained Earnings:** $67,200 **Total Debits and Credits:** - **Debits:** $1,805,200 - **Credits:** $1,805,200 **Additional Information:** 1. **Net Income for 2021:** $160,000 2. **Cash Dividends:** $128,000 declared on December 15, 2021, payable on January 15, 2022. A 5% stock dividend was issued on March 31, 2021, with a market value of $22.00 per share. 3. **Sale of Long-term Investments:** Sold for $140,000. 4. **Sale of Building and Land:** Cost $480,000, book value $350,000, sold for $400,000. Land cost was $20,000. 5. **Machinery Exchange Entry:** - Machinery: $160,000 - Accumulated Depreciation—Machinery: $40,000 - Machinery: $60,000 - Cash: $140,000 6. **Write
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