Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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:

image text in transcribed

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.

image text in transcribed

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 Earnings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Grade Energy Audit Making Smart Energy Choices

Authors: Shirley J. Hansen, James W. Brown

1st Edition

0824709284, 978-0824709280

More Books

Students also viewed these Accounting questions

Question

Evaluate employees readiness for training. page 275

Answered: 1 week ago