Barca Company's B/S at the end of 2019 included the following items: Current assets $1,326,000 Current...

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Barca Company's B/S at the end of 2019 included the following items: Current assets $1,326,000 Current liabilities Land 36,000 Bonds payable $1,224,000 1,320,000 Building 1,344,000 Common shares 216,000 Equipment 384,000 Retained earnings 208,800 Acc. Depreciation - building (156,000) Acc. Depreciation - equipment (13,200) Intangible assets-patents 48,000 Total $2,968,800 Total $2,968,800 The following information is available for 2020: NI was $469,200 Equipment (cost of $24,000 and acc. depreciation of $9,600) was sold for $12,000. Depreciation expense was $4,800 on the building and $10,800 on equipment. Patent amortization expense was $3,600. Current assets other than cash increased by $274,800. Current liabilities increased by $255,600. An addition to the building was completed at a cost of $37,200. A long-term investment in shares was purchased for $24,600 at the end of the year. Bonds payable of $90,000 were issued. Cash dividends of $216,000 were declared and paid. Required: a. Prepare a statement of cash flows for the year ended December 31, 2020. (12 marks) b. Prepare a B/S at December 31, 2020. (13 marks) Barca Company's B/S at the end of 2019 included the following items: Current assets $1,326,000 Current liabilities Land 36,000 Bonds payable $1,224,000 1,320,000 Building 1,344,000 Common shares 216,000 Equipment 384,000 Retained earnings 208,800 Acc. Depreciation - building (156,000) Acc. Depreciation - equipment (13,200) Intangible assets-patents 48,000 Total $2,968,800 Total $2,968,800 The following information is available for 2020: NI was $469,200 Equipment (cost of $24,000 and acc. depreciation of $9,600) was sold for $12,000. Depreciation expense was $4,800 on the building and $10,800 on equipment. Patent amortization expense was $3,600. Current assets other than cash increased by $274,800. Current liabilities increased by $255,600. An addition to the building was completed at a cost of $37,200. A long-term investment in shares was purchased for $24,600 at the end of the year. Bonds payable of $90,000 were issued. Cash dividends of $216,000 were declared and paid. Required: a. Prepare a statement of cash flows for the year ended December 31, 2020. (12 marks) b. Prepare a B/S at December 31, 2020. (13 marks)

Answer rating: 100% (QA)

a Statement of Cash Flows for the Year Ended December 31 2020 Barca Company Statement of Cash Flows ... View the full answer