2. Pip's Puppy Company provided you with the following Comparative Balance Sheets at December 31 ASSETS...
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2. Pip's Puppy Company provided you with the following Comparative Balance Sheets at December 31 ASSETS Cash Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Total Assets Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total Liabilities & Equity Additional information: 2021 $ 41,460 77,000 170,000 12,140 140,000 215,000 (70,000) 250,000 (70,000) $765,600 $ 58,000 265,000 275,000 167,600 $765,600 2020 $ 57,000 64,000 140,000 16,540 150,000 175,000 (42,000) 250,000 (50,000) $760,540 $ 45,000 265,000 250,000 200,540 $760,540 1. Operating expenses include depreciation expense $57,000 2. Land was sold for cash at cost for $35,000. (No Gain or Loss on Sale) 3. Cash dividends of $82,940 were paid. 4. Net income for 2021 was $50,000. 5. Equipment was purchased for $80,000 cash. 6. In addition, equipment costing $40,000 with a book value of $31,000 was sold for $37,000 cash. Hint: (Need to calculate Gain or loss on sales) 7. Issued 25,000 shares of $1 per value common stock in exchange for land with a fair value of $25,000. (Non-Cash Transaction) Instructions Prepare a Statement of Cash Flows for 2021 using the indirect method. 2. Pip's Puppy Company provided you with the following Comparative Balance Sheets at December 31 ASSETS Cash Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Buildings Accumulated depreciation-buildings Total Assets Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total Liabilities & Equity Additional information: 2021 $ 41,460 77,000 170,000 12,140 140,000 215,000 (70,000) 250,000 (70,000) $765,600 $ 58,000 265,000 275,000 167,600 $765,600 2020 $ 57,000 64,000 140,000 16,540 150,000 175,000 (42,000) 250,000 (50,000) $760,540 $ 45,000 265,000 250,000 200,540 $760,540 1. Operating expenses include depreciation expense $57,000 2. Land was sold for cash at cost for $35,000. (No Gain or Loss on Sale) 3. Cash dividends of $82,940 were paid. 4. Net income for 2021 was $50,000. 5. Equipment was purchased for $80,000 cash. 6. In addition, equipment costing $40,000 with a book value of $31,000 was sold for $37,000 cash. Hint: (Need to calculate Gain or loss on sales) 7. Issued 25,000 shares of $1 per value common stock in exchange for land with a fair value of $25,000. (Non-Cash Transaction) Instructions Prepare a Statement of Cash Flows for 2021 using the indirect method.
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Working Depreciation Expense 57000 70000 42000 70000 50000 9000 Gain on sale of equipment 6000 37000 ... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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