Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. P4.6 (LO 1,

image text in transcribed
Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. P4.6 (LO 1, 2) (Preparation of a Statement of Cash Flows and a Balance Slleet) Lansbury Inc. had the following balance sheet at December 31,2024. During 2025, the following occurred. 1. Lansbury Inc, sold part of its debt investment portfolio for $15,000. This transaction resulted in a gain of $3,400 for the firm. The company classifies these investments as available-for-sale. 2. A tract of land was purchased for $13,000cash. 3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying $16,000 cash. 4. An additional $20,000 in common stock was issued at par. 5. Dividends of $8,200 were declared and paid to stockholders. 6. Net income for 2025 was $32,000 after allowing for depreciation of $11,000. 7. Land was purchased through the issuance of $35,000 in bonds. 8. At December 31, 2025, Cash was $37,000, Accounts Receivable was $41,600, and Accounts Payable remained at $30,000. Instructions a. Prepare a statement of cash flows for 2025. b. Prepare an unclassified balance sheet as it would appear at December 31, 2025

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

Step: 3

blur-text-image

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

More Books

Students also viewed these Accounting questions