A spreadsheet for a statement of cash flows is presented below along with the following additional...
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A spreadsheet for a statement of cash flows is presented below along with the following additional information. D a O C Net income was $529,000. Dividends declared $100,000, payable January 31 of next year. On January 31 of current year, $90,000 was paid for dividends declared for last year. 0 5-year Bonds with a face value of $60,000 were issued for $50,000 in the year. One year of discount amortization using the straight-line method was recorded. 1,000 shares of common stocks ($100 par per share) were issues for $150,000. Purchased 30% interest in Kent Company for $90,000, and classified it as Equity method investment. Kent Company reported net income of $50,000, and declared no dividend for the year. The preferred stock was converted to an equal number of common shares. The book value method was used. Property, plant, and equipment costing $200,000 was sold for $140,000. The asset had an accumulated depreciation of 180,000 at the date of sale. Required: Complete the spreadsheet (38 points): Account Titles Debit Cash Account receivable Inventory Equity method investment Property, plant, and equipment Discount on bonds payable Credit Accumulated depreciation Accounts payable Salaries payable Dividends payable Income tax payable Deferred tax liability Change 99,000 400,000 -150,000 105,000 244,000 8,000 -50,000 300,000 -200,000 10,000 9,000 -2,000 Worksheet Entries Debit Credit Credit Bonds payable Preferred stock, $100 par per share Common stock, $100 par per share Additional paid-in capital-common stock Retained earnings Cash Flow from Operating Activities Change 60,000 -500,000 600,000 50,000 429,000 Worksheet Entries Credit Debit Debit Credit Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities Not Affecting Cash Net Change in Cash Debit Credit A spreadsheet for a statement of cash flows is presented below along with the following additional information. D a O C Net income was $529,000. Dividends declared $100,000, payable January 31 of next year. On January 31 of current year, $90,000 was paid for dividends declared for last year. 0 5-year Bonds with a face value of $60,000 were issued for $50,000 in the year. One year of discount amortization using the straight-line method was recorded. 1,000 shares of common stocks ($100 par per share) were issues for $150,000. Purchased 30% interest in Kent Company for $90,000, and classified it as Equity method investment. Kent Company reported net income of $50,000, and declared no dividend for the year. The preferred stock was converted to an equal number of common shares. The book value method was used. Property, plant, and equipment costing $200,000 was sold for $140,000. The asset had an accumulated depreciation of 180,000 at the date of sale. Required: Complete the spreadsheet (38 points): Account Titles Debit Cash Account receivable Inventory Equity method investment Property, plant, and equipment Discount on bonds payable Credit Accumulated depreciation Accounts payable Salaries payable Dividends payable Income tax payable Deferred tax liability Change 99,000 400,000 -150,000 105,000 244,000 8,000 -50,000 300,000 -200,000 10,000 9,000 -2,000 Worksheet Entries Debit Credit Credit Bonds payable Preferred stock, $100 par per share Common stock, $100 par per share Additional paid-in capital-common stock Retained earnings Cash Flow from Operating Activities Change 60,000 -500,000 600,000 50,000 429,000 Worksheet Entries Credit Debit Debit Credit Cash Flows from Investing Activities Cash Flows from Financing Activities Investing and Financing Activities Not Affecting Cash Net Change in Cash Debit Credit
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Answer rating: 100% (QA)
To complete the statement of cash flows spreadsheet we need to calculate the net change in cash by considering the provided information Lets go through each item and calculate the values Net income 55... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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