Preparing a statement of cash flows for the following data below. Here is the information: Presented below
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Question:
Preparing a statement of cash flows for the following data below.
Here is the information:
Presented below are the comparative balance sheets for Gordon Company at December 31, 2013, and 2012.
GORDON COMPANY Comparative Balance Sheet December 31 | ||
2013 | 2012 | |
Cash | $ 113,500 | $ 43,000 |
Accounts Receivable | 63,000 | 56,000 |
Inventory | 102,000 | 107,000 |
Prepaid Insurance | 12,000 | 18,000 |
Land | 136,000 | 120,000 |
Equipment | 172,000 | 142,000 |
Accumulated Depreciation—Equipment | (46,000) | (33,000) |
Building | 200,000 | 200,000 |
Accumulated Depreciation—Building | (60,000) | (39,000) |
$ 692,500 | $ 614,400 | |
Accounts Payable | $33,000 | $29,000 |
Bonds Payable | 210,000 | 185,000 |
Common Stock, $1 Par | 145,000 | 120,000 |
Paid-in Capital in Excess of Par | 90,000 | 79,000 |
Retained Earnings | 214,500 | 201,000 |
$ 692,500 | $ 614,000 |
Additional Information:
1. Land was sold for $28,000 cash. The land was also obtained through the issuance of common stock (see item 2). These are the only two transactions impacting land.
2. Land was obtained by issuing 25,000 shares of $1 par value common stock. The land had a fair value of $36,000.
3. Cash dividends of $86,500 were paid.
4. Net income for 2013 was $100,000.
5. Equipment was purchased for cash. In addition, equipment costing $32,000 with a book value of $12,000 was sold for $9,000 cash.
Related Book For
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