Blake Weaver, Cook Enterprises controller, is preparing the financial statements for 2020. He has completed the comparative

Question:

Blake Weaver, Cook Enterprises’ controller, is preparing the financial statements for 2020. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information:

  • On December 31, 2020, Cook sold a piece of equipment with an original cost of $25,000 for $30,000 cash. The equipment had a book value of $13,000.
  • On February 1, 2020, Cook issued $100,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year.
  • On February 2,2020, Cook took out a ten-year $75,000 long-term loan to provide the remaining funds needed to purchase the building.
  • On May 15, 2020, Cook paid $150,000 for the new building.
  • The company repaid $4,600 of the long-term debt before the end of the year.


Required:

Using the direct method, prepare Cook Enterprises' statement of each follows for 2020.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781119577669

4th Edition

Authors: Charles E. Davis, Elizabeth Davis

Question Posted: