Question: The following are the December 31 2009 post closing trial balance

The following are the December 31, 2009 post-closing trial balance and the December 31, 2010 adjusted trial balance of the Adair Company:

A review of the accounting records reveals the following additional information for 2010:
(a) Investments in bonds to be held to maturity were purchased at year-end for $8,600.
(b) A building was purchased for $28,000.
(c) A note payable was issued for $9,000.
(d) Common stock was issued for $14,500.
(e) Dividends of $6,500 were declared and paid.

1. Using the direct method for operating cash flows, prepare a worksheet (spreadsheet) to support the 2010 statement of cash flows for the Adair Company.
2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is notnecessary.)
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  • CreatedDecember 09, 2013
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