ACFI-492/592 Advanced Financial Reporting The Balance Sheets for Jackson, Inc. for the years ending December 31, 2018 and 2017 are shown below Dec. 31. 2018 141,940 45,500 (2,300) 4,800 1,900 70,960 50,000 175,000 74,000 48,000 Dec. 31, 2017 Cash Allowance for Doubtful Amounts Prepaid Insurance Prepaid Rent Inventories Land Buildings Equipment Delivery equipment 40,500 (2,200) 3,200 5,600 61,200 50,000 175,000 74,000 29,000 Less: Accumulated Depreciation (13,000) (48,500) (9,500) 7.500 (7,500) (35,500) (26,500) 17,700 Equipment Delivery Equipment Patents Dec. 31, 2017 29,000 8,900 155,400 Accounts payable Accrued liabilities Mortgage payable Bonds payable Premium on Bonds Common Stock ($2PV) Additional paid-in capital - Common Stock Additional paid-in capital- Treasury Stock Retained earnings Less: Treasury Stock 24,000 5,500 40,400 100,000 2,400 55,000 92,500 1,500 237,000 50,000 67,500 182,000 12 The income statement for 2018 is as follows: 884,060 Sales Cost of sales Gross proft 345,300 (176,500) Net Gain (Loss) Net income (Loss) 167 500 1, On Jan 3, 2018 Jackson, Inc. declared and distributed a 10% stock dividend when the FMV was S12sh 2. On December 1, 2018 cash dividends of $3 per share were deciared and paid. 3. Delivery equipment which cost $23,000 and book value of $2,000 was sold for $2,200. 4. Amortization on patents was $2,200 5. Sold $8,000 patents for $6,500 cash. 6. Issued Bonds on December 31, 2018. 7. Purchased new delivery equipment. 8. Reissued Treasury Stock for $9,500 Instructions (a) From the information above, prepare a statement of ended December 31, 2018. (b) From the information above, prepare a method of cash provided by operating activities using the dire