The net changes in the balance sheet accounts of Linda, Inc. for the year 2021 are shown below: Account   Debit   Credit Cash   $   217,900     Accounts receivable       $   63,100 Allowance for doubtful accounts       11,700 Inventory   195,900     Prepaid expenses   22,300     Long-term investments       147,000 Land   410,000     Buildings   655,000     Machinery   92,000     Office Equipment       30,000 Accumulated depreciation:             Buildings       24,500     Machinery       18,100     Office Equipment   15,000     Accounts payable   183,900     Accrued liabilities       75,000 Dividends payable       128,500 Premium on bonds       37,600 Bonds payable       940,000 Preferred stock ($50 par)   74,400     Common stock ($10 par)       160,000 Additional paid-in capital—common       298,400 Retained earnings   67,500          $1,933,900   $1,933,900   Additional information:   1.   Net income       $165,500   2.   Cash dividends of $128,500 were declared December 15, 2021, payable January 15, 2022. A 5% stock dividend was issued March 31, 2021, when the market value was $24 per share. 3.   The long-term investments were sold for $140,500.           4.   A building and land which cost $500,500 and had a book value of $355,500 were sold for $407,000. The cost of the land, included in the cost and book value above, was $23,500.           5.   The following entry was made to record an exchange of an old machine for a new one:         Machinery   156,000               Accumulated Depreciation—Machinery   41,000                     Machinery       64,000                 Cash       133,000   6.   A fully depreciated copier machine which cost $30,000 was written off. 7.   Preferred stock of $74,400 par value was redeemed for $92,500. 8.   The company sold 12,400 shares of its common stock ($10 par) on June 15, 2021 for $30 a share. There were 88,000 shares outstanding on December 31, 2021. 9.   Bonds were sold at 104 on December 31, 2021. 10.   Land that was condemned had a book value of $248,000. Proceeds received totaled $115,000. Prepare a statement of cash flows (indirect method). Ignore tax effects.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The net changes in the balance sheet accounts of Linda, Inc. for the year 2021 are shown below:

Account   Debit   Credit
Cash   $   217,900    
Accounts receivable       $   63,100
Allowance for doubtful accounts       11,700
Inventory   195,900    
Prepaid expenses   22,300    
Long-term investments       147,000
Land   410,000    
Buildings   655,000    
Machinery   92,000    
Office Equipment       30,000
Accumulated depreciation:        
    Buildings       24,500
    Machinery       18,100
    Office Equipment   15,000    
Accounts payable   183,900    
Accrued liabilities       75,000
Dividends payable       128,500
Premium on bonds       37,600
Bonds payable       940,000
Preferred stock ($50 par)   74,400    
Common stock ($10 par)       160,000
Additional paid-in capital—common       298,400
Retained earnings   67,500     
    $1,933,900   $1,933,900

 

Additional information:  
1.   Net income       $165,500  
2.   Cash dividends of $128,500 were declared December 15, 2021, payable January 15, 2022. A 5% stock dividend was issued March 31, 2021, when the market value was $24 per share.
3.   The long-term investments were sold for $140,500.          
4.   A building and land which cost $500,500 and had a book value of $355,500 were sold for $407,000. The cost of the land, included in the cost and book value above, was $23,500.          
5.   The following entry was made to record an exchange of an old machine for a new one:
        Machinery   156,000      
        Accumulated Depreciation—Machinery   41,000      
              Machinery       64,000  
              Cash       133,000  
6.   A fully depreciated copier machine which cost $30,000 was written off.
7.   Preferred stock of $74,400 par value was redeemed for $92,500.
8.   The company sold 12,400 shares of its common stock ($10 par) on June 15, 2021 for $30 a share. There were 88,000 shares outstanding on December 31, 2021.
9.   Bonds were sold at 104 on December 31, 2021.
10.   Land that was condemned had a book value of $248,000. Proceeds received totaled $115,000.


Prepare a statement of cash flows (indirect method). Ignore tax effects.

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