Quintana Company presents the balance sheet shown in Exhibit 6.30 and the statement of cash flows shown in Exhibit 6.31 for 2013. The firm sold investments, equipment, and land for cash at their net book value.

The accumulated depreciation of the equipment sold was $20,000.

Prepare a balance sheet for the beginning of the year, January 1, 2013.

Exhibit 6.30

ASSETS

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220,000

Merchandise Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Buildings and Equipment (at cost). . . . . . . . . . . . . . . . . . . . . . . . 500,000

Less Accumulated Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . (200,000)

Investments (noncurrent). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,005,000

LIABILITIES AND SHAREHOLDERS’ EQUITY

Accounts Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . $ 280,000

Other Current Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000

Bonds Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000

Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,000

Total Liabilities and Shareholders’ Equity. . . . . . . . . . . . . . . . . . $1,005,000

Exhibit6.31

Transcribed Image Text:

OPERATIONS $ 200,000 Additions: 60,000 25,000 Subtractions: Increase in Accounts Receivable Increase in Merchandise Inventories. Decrease in Other Current Liabilities. (30,000) (40,000) 45,000 Cash Flow from Operations.. . 170,000 INVESTING $ 40,000 15,000 10,000 (130,000) Sale of Buildings and Equipment Acquisition of Buildings and Equipment 。 Cash Flow from Investing. (65,000) FINANCING Bonds Issued .. Dividends Paid.i... S 60,000 40,000 200,000 100 5,000