Question: The December 31 2014 balance sheet of Tybee Corporation is

The December 31, 2014, balance sheet of Tybee Corporation is provided below (in millions).

Transactions during January 2015:
• Paid $5 for employee wages.
• Collected $10 cash from customers for work previously performed and billed.
• Purchased equipment for $5 cash.
• Purchased $2 of supplies for cash.
• Paid $3 to a vendor for supplies previously purchased on credit in December 2014.
• Paid the interest owed as of December 31, 2014.
• Completed $18 in services for customers, receiving 50 percent payment in cash and billing the remainder.
• Paid $15 to reduce outstanding long-term note payable.
• Collected $5 for the issuance of common shares.
As of 1/31/15:
• Had performed 25 percent of the services for which it had been paid in advance.
• Owes $1 for interest that will be paid next month.
• Depreciated equipment in the amount of $4.
• Physical count of supplies reveals $3 on hand.
• Declared and paid a cash dividend in the amount of 50 percent of January’s net income.

Prepare a complete set of financial statements as of January 31, 2015, and prepare the statement of cash flows under the direct and the indirect (Appendix 4A) method.

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  • CreatedAugust 19, 2014
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