Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year,...
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Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value GOLDEN CORPORATION Comparative Balance Sheets: December 31 Paid-in capital in excess of par value, common stock Retained earnings. Total liabilities and equity Current Year $ 182,000 110,000 628,000 920,000 383,500 (167,000) $1,136,500 $ 123,000 46,000 169,000 613,600 228,400 25,500 $1,136,500 Prior Year $ 126,800 89,000 544,000 759,800 317,000 (113,000) $ 963,800 $ 89,000 34,100 123,100 586,000 187,000 67,700 $ 963,800 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales. Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 54,000 512,000 $1,882,000 1,104,000 778,000 566,000 212,000 47,200 $ 164,800 Additional Information on Current Year Transactions a. Purchased equipment for $66,500 cash. b. Issued 13,800 shares of common stock for $5 cash per share. c. Declared and paid $107,000 in cash dividends. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 69 $ 69 0 0 0 0 0 Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Balance sheet-credit balance accounts Accumulated depreciation Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Statement of cash flows Operating activities December 31, Prior Year $ $ 126,800 89,000 544,000 317,000 1,076,800 113,000 89,000 34,100 586,000 187,000 67,700 1,076,800 Analysis of Changes Debit Credit December 31, Current Year $ FA $ 69 182,000 182,000 Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value GOLDEN CORPORATION Comparative Balance Sheets: December 31 Paid-in capital in excess of par value, common stock Retained earnings. Total liabilities and equity Current Year $ 182,000 110,000 628,000 920,000 383,500 (167,000) $1,136,500 $ 123,000 46,000 169,000 613,600 228,400 25,500 $1,136,500 Prior Year $ 126,800 89,000 544,000 759,800 317,000 (113,000) $ 963,800 $ 89,000 34,100 123,100 586,000 187,000 67,700 $ 963,800 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales. Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 54,000 512,000 $1,882,000 1,104,000 778,000 566,000 212,000 47,200 $ 164,800 Additional Information on Current Year Transactions a. Purchased equipment for $66,500 cash. b. Issued 13,800 shares of common stock for $5 cash per share. c. Declared and paid $107,000 in cash dividends. GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 69 $ 69 0 0 0 0 0 Balance sheet-debit balance accounts Cash Accounts receivable Inventory Equipment GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Balance sheet-credit balance accounts Accumulated depreciation Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Statement of cash flows Operating activities December 31, Prior Year $ $ 126,800 89,000 544,000 317,000 1,076,800 113,000 89,000 34,100 586,000 187,000 67,700 1,076,800 Analysis of Changes Debit Credit December 31, Current Year $ FA $ 69 182,000 182,000
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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