Condensed financial statement data for the Victoria Company for the year are shown on page 178 .

Expenditures on new Plant and Equipment for the year amounted to \(\$ 221,000\). Old Plant and Equipment that had cost \(\$ 64,000\) were sold during the year. It was sold for cash at book value.

a Prepare an income statement (including a reconciliation of retained earnings) for the year.

b Prepare a Statement of Changes in Financial Position for the Victoria Company for the year defining funds as working capital. Support the Statement of Changes in Financial Position with a T-account work sheet.

Transcribed Image Text:

Victoria Company Postclosing Trial Balance Comparative Data (Problems 16, 17, and 18) Debits: Cash... Accounts Receivable Plant and Equipment (Cost). Credits: Accounts Payable Accumulated Depreciation Long-Term Debt Capital Stock Retained Earnings January 1 $ 54,000 156,000 1,703,000 $1,913,000 $ 61,000 491,000 December 31 $ 47,000 184,000 1,860,000 $2,091,000 $ 69,000 560,000 360,000 611,000 225,000 611,000 525,000 491.000 $1,913,000 $2,091,000 INCOME STATEMENT DATA Sales.... Cost of Goods Sold (excluding depreciation) Selling and Administrative Expenses. Depreciation Expense Interest Charges Other Expenses $1,040,000 740,000 203,000 110,000 10,000 11,000