Question
Eastern Travel Services, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current assets: Cash $45,000 $20,000 Accounts receivable 77,000 81,000 Inventory
Eastern Travel Services, Inc.
Comparative Balance Sheets
December 31, 2017 and 2016
Assets
2017
2016
Current assets:
Cash
$45,000
$20,000
Accounts receivable
77,000
81,000
Inventory
60,000
19,000
Prepaid insurance
13,000
17,000
Total current assets
$195,000
$137,000
Land
$105,000
$120,000
Equipment
84,000
53,000
Less: Accumulated depreciation
(21,000)
(16,000)
Total assets
$363,000
$294,000
Liabilities
Current liabilities:
Accounts payable
$29,000
$38,000
Wages payable
28,000
22,000
Interest payable
17,000
16,000
Income taxes payable
13,000
10,000
Total current liabilities
$87,000
$86,000
Notes payable (long-term)
93,000
87,000
Total liabilities
$180,000
$173,000
Stockholders' equity
Common stock
$152,000
$120,000
Retained earnings
31,000
1,000
Total stockholders' equity
$183,000
$121,000
Total liabilities and equity
$363,000
$294,000
The comparative balance sheet for
EasternEastern
Travel Services, Inc., for December 31,
20172017
and
20162016,
is as follows:
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(Click the icon to view the comparative balance sheet.) The following information is taken from the records of
EasternEastern
Travel Services, Inc.:
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(Click the icon to view the transaction data.)Prepare the statement of cash flows (indirect method) for
EasternEastern
Travel Services, Inc., for
20172017.
Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted and decreases in cash.)
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| Eastern Travel Services, Inc. | ||
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| Statement of Cash FlowsOperating Activities Section (Indirect Method) | ||
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| For the Year Ended December 31, 2017 | ||
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| Adjustments to reconcile net income to cash basis: |
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| BALANCED SHEET
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| Balance sheet
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| Net cash provided by (used for) operating activities
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| a. | Land was sold for $ 11 comma 000$11,000. |
| b. | Equipment was purchased for cash. |
| c. | There were no disposals of equipment during the year. |
| d. | The common stock was issued for cash. |
| e. | Net income for 20172017 was$ 37 comma 000$37,000. |
| f. | Cash dividends paid during the year were $ 7 comma 000$7,000. TRANSACTION DATA |
a.
Land was sold for
$ 11 comma 000$11,000.
b.
Equipment was purchased for cash.
c.
There were no disposals of equipment during the year.
d.
The common stock was issued for cash.
e.
Net income for
20172017
was
$ 37 comma 000$37,000.
f.
Cash dividends paid during the year were
$ 7 comma 000$7,000.
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Financial Accounting A Global Approach
Authors: Sidney J. Gray, Belverd E. Needles
1st Edition
9780395839867
