At December 31, 2022, the following data for Washington Company were available: Statement of Income Information:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At December 31, 2022, the following data for Washington Company were available: Statement of Income Information: Sales $450,000 Cost of goods sold (275,000) (15,000) Depreciation expense, plant Depreciation expense, equipment (10,000) Patent amortization (5,000) Remaining expenses (100,000) Loss on sale of equipment (5,000) Income tax expense (20,000) Gain on sale of long-term investment 40,000 Net income (loss) $ 60,000 Statement of Financial Position Information: 2021 Debits Cash 20,000 Accounts receivable (net) 45,000 Merchandise inventory 40,000 Long-term investments 10,000 Plant 150,000 Equipment 100,000 Land 50,000 Patents 40,000 $455.000 Credits 35,000 Accumulated depreciation - plant Accumulated depreciation - equipment 50,000 40,000 Accounts payable Interest payable 5,000 Notes payable, long term 50,000 Common stock, no par value 250,000 Retained earnings 25,000 $455,000 December 31 2022 55,000 60,000 25,000 0 150,000 110,000 200,000 35,000 $635.000 50,000 40,000 10,000 0 95,000 375,000 65,000 $635.000 Other additional information: a. The equipment which was sold was 50% depreciated and had a book value of $20,000 (assume no salvage value). b. Purchased land that cost $50,000; this was a part cash transaction. The remaining balance was covered by a long-term note. C. Paid $20,000 to retire long-term note payable at maturity. d. Sold common stock for $50,000. e. Purchased equipment costing $50,000; paid half in cash, balance due in three years (interest- bearing note). f. Issued shares of common stock, market value of $75,000, for land that cost $100,000, the balance paid in cash. g. Declared dividends of $20,000 during the year. REQUIRED: 1. Prepare a Statement of Cash Flows in GOOD FORM using the direct method to prepare the operating activities section. 2. Prepare a reconciliation of net income to cash flows from operations (indirect method) 3. Prepare a schedule of significant non-cash investing and financing activities. At December 31, 2022, the following data for Washington Company were available: Statement of Income Information: Sales $450,000 Cost of goods sold (275,000) (15,000) Depreciation expense, plant Depreciation expense, equipment (10,000) Patent amortization (5,000) Remaining expenses (100,000) Loss on sale of equipment (5,000) Income tax expense (20,000) Gain on sale of long-term investment 40,000 Net income (loss) $ 60,000 Statement of Financial Position Information: 2021 Debits Cash 20,000 Accounts receivable (net) 45,000 Merchandise inventory 40,000 Long-term investments 10,000 Plant 150,000 Equipment 100,000 Land 50,000 Patents 40,000 $455.000 Credits 35,000 Accumulated depreciation - plant Accumulated depreciation - equipment 50,000 40,000 Accounts payable Interest payable 5,000 Notes payable, long term 50,000 Common stock, no par value 250,000 Retained earnings 25,000 $455,000 December 31 2022 55,000 60,000 25,000 0 150,000 110,000 200,000 35,000 $635.000 50,000 40,000 10,000 0 95,000 375,000 65,000 $635.000 Other additional information: a. The equipment which was sold was 50% depreciated and had a book value of $20,000 (assume no salvage value). b. Purchased land that cost $50,000; this was a part cash transaction. The remaining balance was covered by a long-term note. C. Paid $20,000 to retire long-term note payable at maturity. d. Sold common stock for $50,000. e. Purchased equipment costing $50,000; paid half in cash, balance due in three years (interest- bearing note). f. Issued shares of common stock, market value of $75,000, for land that cost $100,000, the balance paid in cash. g. Declared dividends of $20,000 during the year. REQUIRED: 1. Prepare a Statement of Cash Flows in GOOD FORM using the direct method to prepare the operating activities section. 2. Prepare a reconciliation of net income to cash flows from operations (indirect method) 3. Prepare a schedule of significant non-cash investing and financing activities.
Expert Answer:
Answer rating: 100% (QA)
1 WASHINGTON COMPANY OPERATING ACTIVITY SECTION USING DIRECT METHOD ... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
The Cakebread Candy Company presents the following data for October: During the month, the firm purchased 49,000 pounds of materials for $127,500. Wages earned were $214,000. Compute the labor and...
-
The company reports the following data for the past three years Compute the allowance for bad debts as a percentage of accounts receivable and evaluate the quality of accounts receivable over the...
-
The budget committee of Litwin Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2014. 1. Sales for May are expected to be...
-
Reference frame S is moving along the x axis at 0.6c relative to frame S. A particle that is originally at x = 10 m at t 1 = 0 is suddenly accelerated and then moves at a constant speed of c/3 in...
-
Could Warden's Five Ring Theory be relevant here in analysis? In War? Business? What would be your business rings?
-
Find Ix and Vx in the circuit of Fig. 13.144 using PSpice. 2Vx 12-14-jin 4 60 V j2
-
Omaha, Inc., recorded certain capital stock transactions shown in the following journal entries: (1) issued common stock for \(\$ 40\) cash per share, (2) purchased treasury shares at \(\$ 50\) per...
-
(a) What are the factors to consider in deciding whether a fast or slow approach to change is best? (b) What are the factors to consider in deciding whether a top-down or participatory approach to...
-
imagine that you have been asked to take over as manager of Target Canada, a subsidiary of Target corporation, that is the eighth largest retailer in the U.S. then, describe target canada and the...
-
From the trial balance of Gabriella Leitz, Attorney-at-Law, given in Figure 2.7, prepare (a) An income statement for the month of January, (b) A statement of owners equity for the month ended January...
-
Many college students don't consider retirement plans or investment opportunities because they don't like to think that far into the future." With reference to the above statement, answer the...
-
a. Why is documentation important to (1) management and (2) the auditor? b. Distinguish between a computer run and a run manual.
-
Distinguish between computer hardware and software.
-
Explain the importance of the following principles when running parallel search methods: task distribution load balancing tree ordering
-
This case study is based on car dealerships. How representative is this of other industries?
-
What elements are generally included in an EDP system?
-
Luke was interested in developing a communication budget for the holistic vitamin shop he will be opening in 30 days. He is planning a few promotional sales and will advertise through local...
-
What is the role of business risk analysis in the audit planning process?
-
Ariba Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the...
-
On January 2, Leonard Company acquired 30% of the outstanding stock of Bristol Company for $350,000. For the year ending December 31, Bristol Company earned income of $90,000 and paid dividends of...
-
Brandon Smithson and Lakendra Mooney formed a partnership, dividing income as follows: 1. Annual salary allowance to Mooney of $53,000. 2. Interest of 14% on each partners capital balance on January...
-
When a consumer spends her income on goods and services in such a way that her utility is maximized, she reaches a. monetary equilibrium. b. market equilibrium. c. consumer equilibrium. d. marginal...
-
What is the connection between the law of demand and the law of diminishing marginal utility?
-
In consumer equilibrium, a. the marginal utility from consumption is the same across all goods. b. individuals seek the combination of goods that maximizes their satisfaction, given limited income....
Study smarter with the SolutionInn App