Old MathJax webview

The following information is available for 2020.

1. Net income was $55,000.

2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $10,000.

3. Depreciation expense was $4,000 on the building and $9,000 on equipment.

4. Patent amortization was $2,500.

5. Current assets other than cash increased by $29,000. Current liabilities increased by $13,000.

6. An addition to the building was completed at a cost of $27,000.

7. A long-term investment in stock was purchased for $16,000.

8. Bonds payable of $50,000 were issued.

9. Cash dividends of $30,000 were declared and paid.

10. Treasury stock was purchased at a cost of $11,000.

Instructions (Show only totals for current assets and current liabilities.) a. Prepare a statement of cash flows for 2020.

b. Prepare a balance sheet at December 31, 2020.

The following information is available for 2020.

1. Net income was $55,000.

2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $10,000.

3. Depreciation expense was $4,000 on the building and $9,000 on equipment.

4. Patent amortization was $2,500.

5. Current assets other than cash increased by $29,000. Current liabilities increased by $13,000.

6. An addition to the building was completed at a cost of $27,000.

7. A long-term investment in stock was purchased for $16,000.

8. Bonds payable of $50,000 were issued.

9. Cash dividends of $30,000 were declared and paid.

10. Treasury stock was purchased at a cost of $11,000.

Instructions (Show only totals for current assets and current liabilities.)

a. Prepare a statement of cash flows for 2020.

b. Prepare a balance sheet at December 31, 2020.

The balance sheet at the end of 2019 included the following items. $165,000 $245,000 Current liabilities Current assets (Cash $82,000) Land 30,000 Buildings 120,000 Bonds 100,000 payable Common 180,000 stock Retained 44,000 earnings Equipment 95,000 (30,000) (11,000) Accum. depr.- buildings Accum. depr. equipment Patents Total 40,000 $489,000 Total $489,000 The balance sheet at the end of 2019 included the following items. $ 165,000 $245,000 Current liabilities Current assets (Cash $82,000) Land 30,000 Buildings 120,000 Bonds 100,000 payable Common 180,000 stock Retained 44,000 earnings Equipment 95,000 (30,000) (11,000) Accum. depr.- buildings Accum. depr.- equipment Patents Total 40,000 $489,000 Total $489,000