Question

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


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  • CreatedMarch 04, 2014
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