Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a Cash Flow Statement in proper form. The following information for Joe Corporation is available on December 31, Year 2. Balance Sheet 12/31/Year 2

image text in transcribed

Prepare a Cash Flow Statement in proper form. The following information for Joe Corporation is available on December 31, Year 2. Balance Sheet 12/31/Year 2 $ 55,800 51,000 81,600 0 0 Cash Accounts receivable, net Inventory Buildings Accumulated depreciation, buildings Equipment Accumulated depreciation, equipment Investments Patents Total 12/31/Year 1 $ 19,000 46,500 84,000 180,000 (46,000) 120,000 (20,000) 42,000 30,000 $ 455,500 195,000 (45,000) 0 25,000 $363,400 Accounts payable Dividends payable Note payable (short term) Long-term notes payable Common stock Additional paid-in capital Retained earnings Total $ 76,000 6,000 10,000 50,000 10,000 58,000 153,400 $363,400 $ 74,000 12,000 6,000 260,000 5,000 45,000 53,500 $ 455,500 The following information is available for specific accounts and transactions: 1. Equipment with an original cost of $20,000 which was 60% depreciated was sold for $2,000. 2. $18,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends declared during the year were $6,000. 4. On January 1, Year 2, the building was completely destroyed by a hurricane. Insurance proceeds on the building were $267,000. 5. Investments were sold at $2,800 below their cost. There were no unrealized gains or losses previously recorded on these investments. 6. A long-term note for $20,000 was issued for the acquisition of equipment. 7. Other equipment was purchased for cash

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