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XYZ Corp. uses the indirect method to prepare its statement of cash flows. XYZ's adjusted trial balances at December 31, 2020 and 2019, are as follows. December 31 DEBITS 2020 2019 Cash $ 36,000 $ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, Plant & Equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Dividends 31,500 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and admin expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 $757,700 $1,007,600 CREDITS Accounts payable $ 25,000 $ 15,500 Income taxes payable 21,000 29,100 Dividend payable 31,500 Deferred tax liability 5,300 4,600 Convertible 8% Bonds payable 45,000 20,000 Allowance for doubtful accounts 1,300 1,100 Accumulated depreciation - PP&E 16,500 15,000 Common Stock, $1 par value 50,000 40,000 Paid-in capital in excess of par 9,100 7,500 Retained earnings 44,700 64,600 Sales revenue 538,800 778,700 Gain on sale of PP&E 1,000 $757,700 $1,007,600 Additional Information During 2020, the company sold equipment that originally cost $10,000 and had a book of $2,000 for $3,000 cash Required: a) Prepare Income Statements, Statements of Retained Earnings, and Balance Sheets for the fiscal years ended December 31, 2020 and 2019.

XYZ Corp. uses the indirect method to prepare its statement of cash flows. XYZ's adjusted trial balances at December 31, 2020 and 2019, are as follows. December 31 DEBITS 2020 2019 Cash $ 36,000 $ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, Plant & Equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Dividends 31,500 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and admin expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 $757,700 $1,007,600 CREDITS Accounts payable $ 25,000 $ 15,500 Income taxes payable 21,000 29,100 Dividend payable 31,500 Deferred tax liability 5,300 4,600 Convertible 8% Bonds payable 45,000 20,000 Allowance for doubtful accounts 1,300 1,100 Accumulated depreciation - PP&E 16,500 15,000 Common Stock, $1 par value 50,000 40,000 Paid-in capital in excess of par 9,100 7,500 Retained earnings 44,700 64,600 Sales revenue 538,800 778,700 Gain on sale of PP&E 1,000 $757,700 $1,007,600 Additional Information During 2020, the company sold equipment that originally cost $10,000 and had a book of $2,000 for $3,000 cash Required: a) Prepare Income Statements, Statements of Retained Earnings, and Balance Sheets for the fiscal years ended December 31, 2020 and 2019.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 55PSB: Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance...
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XYZ Corp. uses the indirect method to prepare its statement of cash flows. XYZ's adjusted trial balances at December 31, 2020 and 2019, are as follows. December 31 DEBITS 2020 2019 Cash $ 36,000 $ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, Plant & Equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Dividends 31,500 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and admin expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 $757,700 $1,007,600 CREDITS Accounts payable $ 25,000 $ 15,500 Income taxes payable 21,000 29,100 Dividend payable 31,500 Deferred tax liability 5,300 4,600 Convertible 8% Bonds payable 45,000 20,000 Allowance for doubtful accounts 1,300 1,100 Accumulated depreciation - PP&E 16,500 15,000 Common Stock, $1 par value 50,000 40,000 Paid-in capital in excess of par 9,100 7,500 Retained earnings 44,700 64,600 Sales revenue 538,800 778,700 Gain on sale of PP&E 1,000 $757,700 $1,007,600 Additional Information During 2020, the company sold equipment that originally cost $10,000 and had a book of $2,000 for $3,000 cash Required: a) Prepare Income Statements, Statements of Retained Earnings, and Balance Sheets for the fiscal years ended December 31, 2020 and 2019.
Transcribed Image Text:XYZ Corp. uses the indirect method to prepare its statement of cash flows. XYZ's adjusted trial balances at December 31, 2020 and 2019, are as follows. December 31 DEBITS 2020 2019 Cash $ 36,000 $ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, Plant & Equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Dividends 31,500 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and admin expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 $757,700 $1,007,600 CREDITS Accounts payable $ 25,000 $ 15,500 Income taxes payable 21,000 29,100 Dividend payable 31,500 Deferred tax liability 5,300 4,600 Convertible 8% Bonds payable 45,000 20,000 Allowance for doubtful accounts 1,300 1,100 Accumulated depreciation - PP&E 16,500 15,000 Common Stock, $1 par value 50,000 40,000 Paid-in capital in excess of par 9,100 7,500 Retained earnings 44,700 64,600 Sales revenue 538,800 778,700 Gain on sale of PP&E 1,000 $757,700 $1,007,600 Additional Information During 2020, the company sold equipment that originally cost $10,000 and had a book of $2,000 for $3,000 cash Required: a) Prepare Income Statements, Statements of Retained Earnings, and Balance Sheets for the fiscal years ended December 31, 2020 and 2019.
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