Golf Universe is a regional and online golf equipment retailer. The company reported the following for the

Question:

Golf Universe is a regional and online golf equipment retailer. The company reported the following for the current year:

Purchased a long-term investment for cash, $15,000.

Paid cash dividend, $12,000.

Sold equipment for $6,000 cash (cost, $21,000, accumulated depreciation, $15,000).

Issued shares of no-par stock, 500 shares at $12 cash per share.

Net income was $20,200.

Depreciation expense was $3,000.

Its comparative balance sheet is presented below.


Golf Universe is a regional and online golf equipment retailer.


Required:
1. Following Supplement 12B, complete a T-account worksheet to be used to prepare the statement of cash flows for the current year.
2. Based on the T-account worksheet, prepare the statement of cash flows for the current year in properformat.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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