Jobim Inc. had the following condensed balance sheet at the end of operations for 2024. During 2025,
Question:
Jobim Inc. had the following condensed balance sheet at the end of operations for 2024.
During 2025, the following occurred.
1. A tract of land was purchased for $9,000.
2. Bonds payable in the amount of $15,000 were redeemed at par.
3. An additional $10,000 in common stock was issued at par.
4. Dividends totaling $9,375 were paid to stockholders.
5. Net income was $35,250 after allowing depreciation of $13,500.
6. Land was purchased through the issuance of $22,500 in bonds.
7. Jobim Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2025.
8. Both current assets (other than cash) and current liabilities remained at the same amount.
Instructions
a. Prepare a statement of cash flows for 2025 using the indirect method.
b. Prepare the condensed balance sheet for Jobim Inc. as it would appear at December 31, 2025.
Step by Step Answer:
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield