Phase #3 Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional Information to prepare the Statement of Cash Flows for the month of January 2021. Use the indirect method to prepare the operating activities section. Issued 10,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents. Purchased land with a cost $250,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference. Purchased additional store equipment for $20,000 paying cash. The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the statement of cash flows. Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section. Used the cash proceeds from the bond issue to pay off the mortgage payable of $150,000, The company repurchased 20,000 shares of its common stock on the open market for $9 per share. The company reissued 10,000 of the treasury shares at a price of $18 per share. Issued 1,500 shares of preferred stock at $105 per share. Paid cash dividends of $25,000 to preferred and common stockholders. Clipboard 39600 E 2021 423,615 .540 25,000 40,000 50,000 1,500 65,800 400,000 3,000 Assets Cash Allowance for Doubtful Acc Accounts Reciveable Interest Recievable Notes Recievable Inventory Office Supplies Patents Building Prepaid Insurance Equipment Accumulates Depreciation, Office Equipment Accumulates Depreciation, Building Accumulates Depreciation, Store Equipment Land Total Assets Liabilities & Equity Accounts Payable Interest Payable Income Taxes Payable Discount on Bonds Payable Bonds Payable Notes Payable Mortage Payable Total Liabilites Equity Preferred Stock Common Stock Paid in capital in excess of par: Preferred Paid in capital in excess of par: Common Paid in capital in excess of par: Treasury Stock Retained Earnings Total Stockholders Equity Total Liabilites & Stockholder's Equity 100 15,000 7,200 500 65,000 22500,000 1600 165,000 -17,500 -72,000 -15,800 375,000 1,472,175 145000 -15,000 63,000 -15,000 125,000 356 800 25,000 7500 -30,000 -5,500 - 12500 10,500 -375,000 -325,000 175,000 150,000 357,500 -737,500 52,500 115,000 61,250 200,000 210,000 120,000 61,250 295,000 90,000 850 777100 39,600 25,850 454,600 812 1001 Format Painter Clipboard Undo 275,575 750 5250 269,575 125,500 144,075 8 2100 Sales Revenue Sale Discount Sales Retum and Allowance Net Sales Cost of Goods Sold 6 Gross Profit Operating Expenses Repairs Expenses: Office 9 Depreciation Exp: Office 10 Supplies Exp-Selling 11 Utilities Exp-Office 12 Office Salaries exp. Office Payroll Taxes 14 Depreciation Expense-Store 15 Sales SAlaries exp 16 Sales Payroll Tax exp 17 Utilities Expense-Store 18 Repairs Expense: Stores 19 Bad Debt-Selling 20 Operating Expenses 21 Operating Income 22 Non-operating Items 23 Insurance general 24 Depreciation Exp. Builidng 25 Amortization Exp. 26 Delivery Expenses 27 Interets Expenses 28 Interest Revenue 29 Total Non Operperating Items 2500 2400 1100 25,000 7000 800 20,000 5600 1200 750 2000 70450 73,625 300 9000 800 1500 6500 -50 18,050 Net Income 55575 25,850 34 Retained Earining for Jan- Opening Balance Add: Net Income 37Less: Dividends Paid 38 Retained Earining as on lan 31, 2020 55,575 25,000 56,425 Phase #3 Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional Information to prepare the Statement of Cash Flows for the month of January 2021. Use the indirect method to prepare the operating activities section. Issued 10,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents. Purchased land with a cost $250,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference. Purchased additional store equipment for $20,000 paying cash. The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the statement of cash flows. Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section. Used the cash proceeds from the bond issue to pay off the mortgage payable of $150,000, The company repurchased 20,000 shares of its common stock on the open market for $9 per share. The company reissued 10,000 of the treasury shares at a price of $18 per share. Issued 1,500 shares of preferred stock at $105 per share. Paid cash dividends of $25,000 to preferred and common stockholders. Clipboard 39600 E 2021 423,615 .540 25,000 40,000 50,000 1,500 65,800 400,000 3,000 Assets Cash Allowance for Doubtful Acc Accounts Reciveable Interest Recievable Notes Recievable Inventory Office Supplies Patents Building Prepaid Insurance Equipment Accumulates Depreciation, Office Equipment Accumulates Depreciation, Building Accumulates Depreciation, Store Equipment Land Total Assets Liabilities & Equity Accounts Payable Interest Payable Income Taxes Payable Discount on Bonds Payable Bonds Payable Notes Payable Mortage Payable Total Liabilites Equity Preferred Stock Common Stock Paid in capital in excess of par: Preferred Paid in capital in excess of par: Common Paid in capital in excess of par: Treasury Stock Retained Earnings Total Stockholders Equity Total Liabilites & Stockholder's Equity 100 15,000 7,200 500 65,000 22500,000 1600 165,000 -17,500 -72,000 -15,800 375,000 1,472,175 145000 -15,000 63,000 -15,000 125,000 356 800 25,000 7500 -30,000 -5,500 - 12500 10,500 -375,000 -325,000 175,000 150,000 357,500 -737,500 52,500 115,000 61,250 200,000 210,000 120,000 61,250 295,000 90,000 850 777100 39,600 25,850 454,600 812 1001 Format Painter Clipboard Undo 275,575 750 5250 269,575 125,500 144,075 8 2100 Sales Revenue Sale Discount Sales Retum and Allowance Net Sales Cost of Goods Sold 6 Gross Profit Operating Expenses Repairs Expenses: Office 9 Depreciation Exp: Office 10 Supplies Exp-Selling 11 Utilities Exp-Office 12 Office Salaries exp. Office Payroll Taxes 14 Depreciation Expense-Store 15 Sales SAlaries exp 16 Sales Payroll Tax exp 17 Utilities Expense-Store 18 Repairs Expense: Stores 19 Bad Debt-Selling 20 Operating Expenses 21 Operating Income 22 Non-operating Items 23 Insurance general 24 Depreciation Exp. Builidng 25 Amortization Exp. 26 Delivery Expenses 27 Interets Expenses 28 Interest Revenue 29 Total Non Operperating Items 2500 2400 1100 25,000 7000 800 20,000 5600 1200 750 2000 70450 73,625 300 9000 800 1500 6500 -50 18,050 Net Income 55575 25,850 34 Retained Earining for Jan- Opening Balance Add: Net Income 37Less: Dividends Paid 38 Retained Earining as on lan 31, 2020 55,575 25,000 56,425