Question
Eagles Inc. had the following statement of financial position at the end of operations for 2017: During 2018, the following occurred: 1. Eagles sold its
Eagles Inc. had the following statement of financial position at the end of operations for 2017:
During 2018, the following occurred:
1. Eagles sold its investment portfolio at a loss of $14,800. |
2. A parcel of land was purchased for $17,600. |
3. Common shares were bought back at $10,000. |
4. Dividends totalling $9,600 were declared and paid to shareholders. |
5. Net income for 2018 was $17,200. |
6. Depreciation for 2018 was 9,600. |
7. At December 31, 2018, Cash was $22,560; Accounts Receivable was $33,600; and Accounts Payable was $32,000. |
1. Prepare the statement of financial position as it would appear at December 31, 2018.
2. Prepare a statement of cash flows for the year ended December 31, 2018 using the indirect method. Assume dividends paid are treated as financing activities.
Cash Accounts receivable Investment Portfolio Equipment (net) Land 16,000 Accounts payable 16,960 Bonds payable 25,600 Common shares 64,800 Retained earnings 32,000 24,000 32,800 80,000 18,560 155360 155360 Cash 32,000 22,560 33,600 Accounts Payable Bonds Payable Common Shares Accounts receivable Investment portfolio Equipment (net) Land Retained EarningsStep by Step Solution
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