ES TIMER Additional Problem 12 Carla Vista Ltd., which follows ASPE had the following comparative statement of financial position: Carla Vista Ltd. Comparative Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory 2021 2020 $ 93,480 $ 57,000 155,040 116,280 91,200 136,800 Prepaid insurance Equipment 11,400 9,120 351,120 296,400 Accumulated depreciation-equipment Patents (79,800) (57,000) 91,200 114,000 Total assets $713,640 $672,600 Liabilities and Shareholders' Equity Accounts payable $104,880 $91,200 Interest payable 9,120 13,680 Salaries and wages payable 18,240 9,120 Income taxes payable 18,240 22,800 Long-term note payable 136,800 157,320 Common shares 296,400 296,400 Retained earnings 129,960 82,080 Total liabilities and shareholders' equity $713,640 $672,600 Additional information: 1. Net income for the fiscal year was $61,560. 2. Equipment that cost $45,600 and was 70% depreciated was sold during 2021, for a gain of $4,560. 3. No patents were purchased or sold during the fiscal year. Prepare the statement of cash flows using the indirect format. (Show amounts that decrease cash flow with Carla Vista Ltd. Statement of Cash Flows TIMER CES Problem C-05 The following accounts appeared in the December 31 trial balance of the Crane Theatre: 6 6 Debit Credit 4 Equipment $1,171,200 56 Accumulated depreciation-equipment 15 Notes payable 30 Sales revenue $146,400 226,900 915,000. 23 Rent expense 75,600 22 20 Salaries and wages expense 97,600 Interest expense 11,000 21 12 From the account balances above and the information that follows, prepare the annual adjusting entries necessary on December 31: The note payable is a 90-day note given to the bank on October 20 and bearing interest at 10%. (Hint: Use number of days in your calculation.) In December, 2,400 coupon admission books were sold at $25 each. They can be used for admission any time after January 1. 1.05 2 1 The equipment has an estimated life of 16 years and a residual value of $48,800. (Use the straight-line method.) 2. 3. Study 4 Of the Rent Expense balance, $1,300 is paid in advance. 5. Salaries accrued but unpaid are $14,400. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Em amounts. Use 365 days for calculation.) No. Account Titles and Explanation 1. 2 3. e here to search 30-1 O Debit C Credit THER Problem C-05 The following accounts appeared in the December 31 trial balance of the Crane Theatre: 1 Debit Credit Equipment $1,171,200 Accumulated depreciation-equipment $146,400 Notes payable Sales revenue 226,900 915,000 Rent expense 75,600 Salaries and wages expense 97,600 Interest expense 11,000 From the account balances above and the information that follows, prepare the annual adjusting entries necessary on December 31: The note payable is a 90-day note given to the bank on October 20 and bearing interest at 10%. (Hint: Use number of days in your calculation.) 1. The equipment has an estimated life of 16 years and a residual value of $48,800. (Use the straight-line method.) 2. 3. 4. Of the Rent Expense balance, $1,300 is paid in advance. 5. Salaries accrued but unpaid are $14,400. In December, 2,400 coupon admission books were sold at $25 each. They can be used for admission any time after January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" amounts. Use 365 days for calculation.) No. Account Titles and Explanation Debit Credit to search o IT