Additional information 1. Wrote off $500 accounts receivable as uncollectible. 2. Sold a fixed asset for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Additional information 1. Wrote off $500 accounts receivable as uncollectible. 2. Sold a fixed asset for $4,000 cash (cost, $15,000; accumulated depreciation, $9,000). 3. Issued common stock for $5,000 cash. 4. Declared and paid a cash dividend, $5,000. 5. Purchased land, $20,000 cash. 6. Acquired land for $21,000 and issued common stock as payment in full. 7. Acquired fixed assets, cost $16,000; issued a $16,000, three-year, interest-bearing note payable. 8. Paid a $10,000 long-term note installment by issuing common stock to the creditor. 9. Borrowed cash on long-term note, $20,000. Required Prepare a current year statement of cash flows using the indirect method to report cash flows from operating activities. Label Corporation's recent comparative balance sheets and income statement, along with additional information follow. Prior Current Income Statement, For Year Current Balance Sheets, December 31 Year Year ended December 31 Year Assets Sales revenue.. $80,000 Cash and cash equivalents $ 15,000 $ 31,000 Cost of goods sold (35,000) Accounts receivable.. 30,000 28,500 Depreciation expense.. (5,000) Allowance for doubtful accounts. (1,500) (2,000) Bad debt expense. (1,000) Inventory..... 10,000 15,000 Insurance expense. (1,000) Prepaid insurance.. 2,400 1,400 Interest expense.. (2,000) Fixed assets. 80,000 81,000 Salaries expense (12,000) Accumulated depreciation (20,000) (16,000) Income tax expense.. (3,000) Land.... Total assets. Liabilities and Stockholders' Equity Accounts payable.. $ 10,000 $ 11,000 2,000 - 1,000 1,000 40,100 81,100 Other expenses, including loss $156,000 $220,000 on sale of fixed assets (15,000) Net income... $ 6,000 Salaries payable. Interest payable Notes payable, long-term. 20,000 46,000 Common stock, no-par. 100,000 136,000 Retained earnings 24,000 25,000 Total liabilities and stockholders' equity $156,000 $220,000 Additional information 1. Wrote off $500 accounts receivable as uncollectible. 2. Sold a fixed asset for $4,000 cash (cost, $15,000; accumulated depreciation, $9,000). 3. Issued common stock for $5,000 cash. 4. Declared and paid a cash dividend, $5,000. 5. Purchased land, $20,000 cash. 6. Acquired land for $21,000 and issued common stock as payment in full. 7. Acquired fixed assets, cost $16,000; issued a $16,000, three-year, interest-bearing note payable. 8. Paid a $10,000 long-term note installment by issuing common stock to the creditor. 9. Borrowed cash on long-term note, $20,000. Required Prepare a current year statement of cash flows using the indirect method to report cash flows from operating activities. Label Corporation's recent comparative balance sheets and income statement, along with additional information follow. Prior Current Income Statement, For Year Current Balance Sheets, December 31 Year Year ended December 31 Year Assets Sales revenue.. $80,000 Cash and cash equivalents $ 15,000 $ 31,000 Cost of goods sold (35,000) Accounts receivable.. 30,000 28,500 Depreciation expense.. (5,000) Allowance for doubtful accounts. (1,500) (2,000) Bad debt expense. (1,000) Inventory..... 10,000 15,000 Insurance expense. (1,000) Prepaid insurance.. 2,400 1,400 Interest expense.. (2,000) Fixed assets. 80,000 81,000 Salaries expense (12,000) Accumulated depreciation (20,000) (16,000) Income tax expense.. (3,000) Land.... Total assets. Liabilities and Stockholders' Equity Accounts payable.. $ 10,000 $ 11,000 2,000 - 1,000 1,000 40,100 81,100 Other expenses, including loss $156,000 $220,000 on sale of fixed assets (15,000) Net income... $ 6,000 Salaries payable. Interest payable Notes payable, long-term. 20,000 46,000 Common stock, no-par. 100,000 136,000 Retained earnings 24,000 25,000 Total liabilities and stockholders' equity $156,000 $220,000
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Visit www.guidestar.org and obtain the Form 990 for a local not-for-profit organization. a. Examine Part VIII of the 990 to determine gross receipts of the organization. b. Examine Part IX of the...
-
Jeff Boyer, owner of Rainking of Exercise 5-1, noticed that the watering systems for many houses in a local subdivision had the same layout and required virtually identical amounts of prime cost....
-
Describe an incident that occurred in another country that caused a company negative publicity. How did the company respond? Was the response appropriate? Why or why not?
-
Assume that you have purchased a small retail nursery. Your nursery sells various types and sizes of trees, bedding plants, vegetable plants, and shrubs. It also sells fertilizer and potting soil....
-
A business issued a 30-day, 4% note for $60,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) The issuance of the note and (b) The payment...
-
Information during current month Production in units, 25,000 Raw Materials used, P500,000 of which P50,000 is indirect Factory labor hours utilized, 2,000 hours. This include 200 hours worked as...
-
You are evaluating a start-up company that is currently generating $500,000 in annual revenue. The company is expected to grow at a rate of 10% per year for the next 5 years before slowing down to a...
-
What are the ethical, legal, and social implications of reproductive technologies, including gamete donation, surrogacy, preimplantation genetic diagnosis (PGD), and gene editing techniques, and how...
-
Describe and discuss various methods used in business to identify quality problems.
-
You are currently 40 years old and intend to retire at age 60. To make your retirement easier, you intend to start a retirement account. At the END of each of years, you will deposit some money to...
-
How to accrue and measure interest payment obligations, particularly when there\'s a possibility of early redemption? Discuss, analyze and make a conclusion. Refer to FASB to support an
-
Initially there is one firm in the market for planes. The firm has a linear cost function of C 2Q (MC 2). The market linear inverse demand function is P 9 - Q Find the quantity and price that the...
-
From the following estimate total sales: Cash sales Rs. 20,000, Cash collection from debtors Rs. 130,000, bad debts during the year 15,000, Cash discount to debtors Rs. 5000. Debtors as on 1.1.2014...
-
United Business Forms capital structure is as follows: Debt ............................................ 35% Preferred stock ........................... 15 Common equity .......................... 50...
-
A monopolist produces at an output where the price is _________ than its marginal cost, so the value to society from the last unit produced is _________ than its marginal cost.
-
An argument against monopoly is that a lack of competition tends to retard _________ advance; but, in fact, many near monopolists are important innovators.
-
The goal of government regulation as an alternative approach to dealing with monopolies is to achieve the efficiency of large-scale production without permitting the _________ monopoly prices and...
Study smarter with the SolutionInn App