Kay Wing, Inc., prepared the following balance sheet at December

Kay Wing, Inc., prepared the following balance sheet at December 31, 2013.
Cash ............... $ 65,000
Accounts receivable ........... 37,000
Inventory .............. 70,000
Long-term investments ........... 20,000
Land ................ 39,000
Plant and equipment (net) ....... 109,000
Total assets ............. $340,000

Accounts payable ............ $ 33,000
Taxes payable .............. 4,000
Bonds payable .............. 80,000
Capital stock ............. 90,000
Retained earnings ............ 133,000
Total liabilities and stockholders’ equity . $340,000

The following occurred during 2014.
1. $15,000 in cash and a $35,000 note payable were exchanged for land valued at $50,000.
2. Bonds payable (maturing in 2018) in the amount of $30,000 were retired by paying $28,000 cash.
3. Capital stock in the amount of $40,000 was issued at par value.
4. The company sold surplus equipment for $10,000. The equipment had a book value of $14,000 at the time of the sale.
5. Net income was $35,500.
6. Cash dividends of $5,000 were paid to the stockholders.
7. 100 shares of stock (considered short-term investments) were purchased for $8,300.
8. A new building was acquired through the issuance of $75,000 in bonds.
9. $12,000 of depreciation was recorded on the plant and equipment.
10. At December 31, 2014, Cash was $93,200, Accounts receivable had a balance of $41,500, Inventory had increased to $73,000, and Accounts payable had fallen to $25,500. Long-term investments and Taxes payable were unchanged from 2013.

Required:
1. Prepare a statement of cash flows for 2014.
2. Prepare the December 31, 2014, balance sheet for Kay Wing, Inc.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...

Members

  • Access to 2 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION

OR

Non-Members

Get help from Accounting Tutors
Ask questions directly from Qualified Online Accounting Tutors .
Best for online homework assistance.