The following transactions for calendar year 2021 occurred for ABC Company's first year of operations, ABC...
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The following transactions for calendar year 2021 occurred for ABC Company's first year of operations, ABC uses periodic inventory. Ending inventory was $80,000.. Required: Prepare a classified statement of Cash Flows for 2021. Use either the direct or indirect method. 1. Started business by issuing 100,000 shares of no-par common stock for $400,000. 2, Leased a building for two years on 1/1/2021 at $18,000 per year and paid two years rent in advance. 3. Purchased equipment for $200,000 paid $50,000 down and igned a two-year, 8% note for the balance. Equipment was acquired on 8/1/2021. 4. Purchased $500,000 of inventory on account. 5. Made Sales on account of $800,000, cash sales of $350,000 for the year. 6. Paid salaries, $180,000. 7. Paid $410,000 for the inventory purchased in Item 4. 8. Depreciation on equipment was $5,000 for 2021. 9. Purchased a debt investment for $100,000 on May 1, 2021. Maturity date is July 1, 2022. 10.Paid Dividends of $200,000 on December 1, 2021. 11. Collected $730,000 on the sales made in Item 5. The following transactions for calendar year 2021 occurred for ABC Company's first year of operations, ABC uses periodic inventory. Ending inventory was $80,000.. Required: Prepare a classified statement of Cash Flows for 2021. Use either the direct or indirect method. 1. Started business by issuing 100,000 shares of no-par common stock for $400,000. 2, Leased a building for two years on 1/1/2021 at $18,000 per year and paid two years rent in advance. 3. Purchased equipment for $200,000 paid $50,000 down and igned a two-year, 8% note for the balance. Equipment was acquired on 8/1/2021. 4. Purchased $500,000 of inventory on account. 5. Made Sales on account of $800,000, cash sales of $350,000 for the year. 6. Paid salaries, $180,000. 7. Paid $410,000 for the inventory purchased in Item 4. 8. Depreciation on equipment was $5,000 for 2021. 9. Purchased a debt investment for $100,000 on May 1, 2021. Maturity date is July 1, 2022. 10.Paid Dividends of $200,000 on December 1, 2021. 11. Collected $730,000 on the sales made in Item 5.
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ABC Company Statement of Cash Flows For the Year Ended December 31 202... View the full answer
Related Book For
South Western Federal Taxation 2014 Comprehensive Volume
ISBN: 9781285180922
37th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young
Posted Date:
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