XYZ Company Balance Sheet December 31, 20X2   Dec. 31, 20X2 Dec. 31, 20X1 Inc./Dec.         Cash 25,000 22,000 3,000 Accounts Receivable          30,000 10,000 20,000 Inventories 23,000 19,000 4,000 Investments 15,000 40,000 (25,000) Land 60,000 0 60,000 Equipment 88,000 54,000 34,000 Accumulated depreciation--Equipment                  (8,000)                 (5,000) 3,000   233,000 140,000           Accounts payable   16,000 18,000  (2,000) Accrued expenses 20,000 3,000 17,000 Dividends payable 25,000 14,000 11,000 Common stock 120,000 80,000 40,000 Paid-in capital in excess of par                  20,000                    15,000                     5,000 Retained earnings 32,000 10,000 22,000    233,000 140,000     a. The investments were sold for $24,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $50,000 credit to Retained Earnings for net income. f. There was a $28,000 debit to Retained Earnings for cash dividends declared.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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XYZ Company

Balance Sheet

December 31, 20X2

 

Dec. 31, 20X2

Dec. 31, 20X1

Inc./Dec.

       

Cash

25,000

22,000

3,000

Accounts Receivable

         30,000

10,000

20,000

Inventories

23,000

19,000

4,000

Investments

15,000

40,000

(25,000)

Land

60,000

0

60,000

Equipment

88,000

54,000

34,000

Accumulated depreciation--Equipment

                 (8,000)

                (5,000)

3,000

 

233,000

140,000

 
       

Accounts payable

  16,000

18,000

 (2,000)

Accrued expenses

20,000

3,000

17,000

Dividends payable

25,000

14,000

11,000

Common stock

120,000

80,000

40,000

Paid-in capital in excess of par

                 20,000

                   15,000

                    5,000

Retained earnings

32,000

10,000

22,000

 

 233,000

140,000

 

 

a. The investments were sold for $24,000 cash.

b. Equipment and land were acquired for cash.

c. There were no disposals of equipment during the year.

d. The common stock was issued for cash.

e. There was a $50,000 credit to Retained Earnings for net income.

f. There was a $28,000 debit to Retained Earnings for cash dividends declared.

 

 

 

STATEMENT OF CASH FLOWS

Cash flows from Operating Activities:

 

 

 

   Net Income

$

 

 

   Add: 

$

 

 

 

 

 

 

 

 

 

 

   Deduct: 

$

 

 

 

 

 

 

 

 

 

 

   Net cash flows from operating activities

 

 

$

Cash flows from Investing Activities:

 

 

 

   Add: 

$

 

 

 

 

$

 

   Deduct: 

$

 

 

 

 

 

 

   Net cash flows from investing activities

 

 

 

Cash flows from Financing Activities:

 

 

 

   Add: 

$

 

 

 

 

$

 

   Deduct: 

$

 

 

 

 

 

 

   Net cash flows from financing activities

 

 

 

Increase or decrease in cash

 

 

$

Cash at the beginning of the year

 

 

 

Cash at the end of the year

 

 

$

 

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