1. The income statement for 2019 included the following items. a. Net income, $399,000 b. Depreciation...

 

  

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1. The income statement for 2019 included the following items. a. Net income, $399,000 b. Depreciation expense for the year, $30,180. c. Amortization on the bonds payable, $320. 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $900,000, receiving cash of $898,720. 4. The company distributed 5,000 shares of common stock in a stock dividend when the market value was $12.00 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2019 is considered a financing activity because it does not relate to operations. Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Interest Payable Unearned Revenue Long-Term Liabilities: Notes Payable Mortgage Payable Bonds Payable Discount on Bonds Payable Total Liabilities Paid-In Capital: Liabilities Stockholders' Equity Preferred Stock Paid-In Capital in Excess of Par-Preferred Common Stock Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 4,160 $ 580 500 3,850 24,000 540 850 9,600 315,000 900,000 (960) 1,258,120 1,610 230 300 1,050 0 40 450 9,600 0 0 13,280 200,000 100,000 355,000 205,000 150,000 321,950 2,950 1,126,950 207,950 $ 2,385,070 $ 221,230 0 ➤ Current Assets: Cash Outdoor Adventure Company Comparative Balance Sheet December 31, 2019 and 2018 Short-term Investments, net Accounts Receivable, net Merchandise Inventory Total Assets Assets Office Supplies Prepaid Rent Property, Plant, and Equipment: Land Building Canoes Office Furniture and Equipment Accumulated Depreciation-PP&E $ $ 2019 1,315,060 $ 26,000 1,200 900 70 0 375,000 565,000 12,960 120,000 (31,120) 2,385,070 $ 2018 11,810 0 5,900 0 100 1,400 75,000 115,000 12,960 0 (940) 221,230 Cash Flows From Investing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows From Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, Dec. 31, 2018 Cash Balance, Dec. 31, 2019 Non-cash Investing and Financing Activities: Outdoor Adventure Company Statement of Cash Flows Year Ended December 31, 2019 Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities 1. The income statement for 2019 included the following items. a. Net income, $399,000 b. Depreciation expense for the year, $30,180. c. Amortization on the bonds payable, $320. 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $900,000, receiving cash of $898,720. 4. The company distributed 5,000 shares of common stock in a stock dividend when the market value was $12.00 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2019 is considered a financing activity because it does not relate to operations. Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Interest Payable Unearned Revenue Long-Term Liabilities: Notes Payable Mortgage Payable Bonds Payable Discount on Bonds Payable Total Liabilities Paid-In Capital: Liabilities Stockholders' Equity Preferred Stock Paid-In Capital in Excess of Par-Preferred Common Stock Paid-In Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 4,160 $ 580 500 3,850 24,000 540 850 9,600 315,000 900,000 (960) 1,258,120 1,610 230 300 1,050 0 40 450 9,600 0 0 13,280 200,000 100,000 355,000 205,000 150,000 321,950 2,950 1,126,950 207,950 $ 2,385,070 $ 221,230 0 ➤ Current Assets: Cash Outdoor Adventure Company Comparative Balance Sheet December 31, 2019 and 2018 Short-term Investments, net Accounts Receivable, net Merchandise Inventory Total Assets Assets Office Supplies Prepaid Rent Property, Plant, and Equipment: Land Building Canoes Office Furniture and Equipment Accumulated Depreciation-PP&E $ $ 2019 1,315,060 $ 26,000 1,200 900 70 0 375,000 565,000 12,960 120,000 (31,120) 2,385,070 $ 2018 11,810 0 5,900 0 100 1,400 75,000 115,000 12,960 0 (940) 221,230 Cash Flows From Investing Activities: Net Cash Provided by (Used for) Investing Activities Cash Flows From Financing Activities: Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, Dec. 31, 2018 Cash Balance, Dec. 31, 2019 Non-cash Investing and Financing Activities: Outdoor Adventure Company Statement of Cash Flows Year Ended December 31, 2019 Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Net Cash Provided by (Used for) Operating Activities

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