AICPA ADAPTED The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below Table Summary Row is a header and spans columns 2 and 3 Rows 3 and 15 are subheaders and contain data only in column 1 December 31, 20X1 20X0 Assets Cash $174,000 $223,200 Accounts receivable 306,000 327,600 Allowance for uncollectible accounts (19,200) (20,400) Inventories 579,600 645,600 Machinery and equipment 1,112,400 776,400 Accumulated depreciation on machinery and equipment (499,200) (446,400) Leasehold improvements 104,400 104,400 Accumulated amortization on leasehold improvements (69,600) (58,800) Securities held for plant expansion 180,000 0 Patents 33,360 36,000 Totals $1,901,760 $1,587,600 Liabilities and stockholders equity Accounts payable $279,360 $126,000 Dividend payable 48,000 0 Current portion of 6 serial bonds payable 60,000 60,000 6 serial bonds payablenoncurrent portion 300,000 360,000 Preferred stock 108,000 120,000 Common stock 600,000 600,000 Retained earnings 506,400 321,600 Totals $1,901,760 $1,587,600 Supplemental Information The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0 Table Summary Row 1 is a header and spans columns 2 and 3 December 31, 20X1 20X0 Beginning balance $321,600 $157,200 Net income 234,000 206,400 555,600 363,600 Dividends declared (48,000) (42,000) Premium on repurchased preferred stock (1,200) 0 Ending balance $506,400 $321,600 On December 10, 20X1, the board of directors declared a cash dividend of $0 24 per share, payable to holders of common stock on January 10, 20X2 Purchased new machinery for $463,000 In addition, Banciu sold certain machinery it was no longer using for $57,600 The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares Banciu debited the premium paid to Retained earnings Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1 During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion Page 20 35 Required Prepare the entries (in general journal form) that would be entered into T accounts needed to prepare a statement of cash flows from the data given For example, the first entry would be DR Cash (OperationsNet income) $234,000 CR Retained earnings $234,000 Prepare a statement of cash flows for Banciu Corporation for 20X1 Use the indirect method for presenting cash flow from operations

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AICPA ADAPTED The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below. Table Summary:

AICPA ADAPTED

The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below.

Table Summary: Row is a header and spans columns 2 and 3. Rows 3 and 15 are subheaders and contain data only in column 1.

December 31, 20X1 20X0 Assets Cash $174,000 $223,200 Accounts receivable 306,000 327,600 Allowance for uncollectible accounts (19,200) (20,400) Inventories 579,600 645,600 Machinery and equipment 1,112,400 776,400 Accumulated depreciation on machinery and equipment (499,200) (446,400) Leasehold improvements 104,400 104,400 Accumulated amortization on leasehold improvements (69,600) (58,800) Securities held for plant expansion 180,000 0 Patents 33,360 36,000 Totals $1,901,760 $1,587,600 Liabilities and stockholders equity Accounts payable $279,360 $126,000 Dividend payable 48,000 0 Current portion of 6% serial bonds payable 60,000 60,000 6% serial bonds payablenoncurrent portion 300,000 360,000 Preferred stock 108,000 120,000 Common stock 600,000 600,000 Retained earnings 506,400 321,600 Totals $1,901,760 $1,587,600

Supplemental Information:

The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0.

Table Summary: Row 1 is a header and spans columns 2 and 3.
December 31, 20X1 20X0 Beginning balance $321,600 $157,200 Net income 234,000 206,400 555,600 363,600 Dividends declared (48,000) (42,000) Premium on repurchased preferred stock (1,200) 0 Ending balance $506,400 $321,600
On December 10, 20X1, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 20X2.
Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.
Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.
Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1.
During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible.
During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion.Page 20-35

Required:

Prepare the entries (in general journal form) that would be entered into T-accounts needed to prepare a statement of cash flows from the data given. For example, the first entry would be

DR Cash (OperationsNet income) $234,000

CR Retained earnings $234,000
Prepare a statement of cash flows for Banciu Corporation for 20X1. Use the indirect method for presenting cash flow from operations