Question

On December 31, 2010, a fire destroyed a significant portion of the Richey Company accounting records. Only the January 1, 2010 balance sheet, the statement of cash flows for 2010, and several additional documents were saved as follows:


Statement of Cash Flows
For Year Ended December 31, 2010


Schedule 1: Investing and Financing Activities Not Affecting Cash
Investing Activities
Acquisition of land by issuance of preferred stock (40 shares) .... $(4,800)
Financing Activities
Issuance of preferred stock to acquire land ............ 4,800
The remaining financial documents reveal the following additional data:
1. The new building was acquired on December 31, 2010. The related mortgage requires equal annual repayments of the principal over a five-year period beginning December 31, 2012.
2. The company issued a stock dividend of 200 shares of common stock on December 14, 2010. On the date of declaration, the stock was selling for $18 per share.
3. The equipment that was sold had an original cost of $1,900.

Required
Prepare a December 31, 2010 balance sheet for Richey Company. Include supportingcalculations.


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  • CreatedDecember 09, 2013
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