Presented below are the financial statements of Maple Leaf Company, a public company, for the year...
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Presented below are the financial statements of Maple Leaf Company, a public company, for the year ending 31 December 2020. Statement of Financial Position 31 December Assets Cash Accounts receivable (net) Inventories 2020 2019 $ 50,000 $ 45,000 105,000 70,000 130,000 110,000 Land 162,500 100,000 Plant and equipment (net) 245,000 266,500 Patents 15,000 16,500 Total assets $707,500 $608,000 Liabilities and equities Accounts payable 192,600 133,700 Wages payable 36,400 45,000 Interest payable 6,700 15,800 Income tax payable 16,900 4,200 Deferred income tax liability 70,000 50,000 Bonds payable 80,400 114,300 Discount on bonds payable (4,000) (10,000) Common shares (no par) 207,500 182,000 Retained earnings 101,000 73,000 Total liabilities and equities $707,500 $608,000 Statement of Earnings Year ended 31 December 2020 Sales Cost of sales Gross margin Expenses Wages expense Depreciation expense Amortization of patents Interest expense Gain on retirement of bonds Miscellaneous expense Loss on sale of equipment Income before income tax Income tax Earnings (net income) $185,000 10,000 1,500 $600,000 280,000 320,000 18,000 (10,000) 3,500 2,000 210,000 110,000 49,500 $ 60.500 Additional information: There were 42,000 common shares issued and outstanding at 31 December 2019. In March 2020, the company issued a 10% stock dividend, valued at market price per share of $7. In April 2020, Maple Leaf issued common stock for land, valued at $20,000. Other shares were issued for cash. The company sold equipment costing $26,500, with a net book value of $11,500. On 31 October 2020, Maple Leaf declared and paid cash dividend to common shareholders. Common shares with an average issuance price of $74,000 were retired for cash in December 2020. Discount amortization was $2,500 during the year. A portion of the bond payable was redeemed for cash. Assume that dividends paid are financing activities and that interest paid and received, and dividends received are operating transactions. Presented below are the financial statements of Maple Leaf Company, a public company, for the year ending 31 December 2020. Statement of Financial Position 31 December Assets Cash Accounts receivable (net) Inventories 2020 2019 $ 50,000 $ 45,000 105,000 70,000 130,000 110,000 Land 162,500 100,000 Plant and equipment (net) 245,000 266,500 Patents 15,000 16,500 Total assets $707,500 $608,000 Liabilities and equities Accounts payable 192,600 133,700 Wages payable 36,400 45,000 Interest payable 6,700 15,800 Income tax payable 16,900 4,200 Deferred income tax liability 70,000 50,000 Bonds payable 80,400 114,300 Discount on bonds payable (4,000) (10,000) Common shares (no par) 207,500 182,000 Retained earnings 101,000 73,000 Total liabilities and equities $707,500 $608,000 Statement of Earnings Year ended 31 December 2020 Sales Cost of sales Gross margin Expenses Wages expense Depreciation expense Amortization of patents Interest expense Gain on retirement of bonds Miscellaneous expense Loss on sale of equipment Income before income tax Income tax Earnings (net income) $185,000 10,000 1,500 $600,000 280,000 320,000 18,000 (10,000) 3,500 2,000 210,000 110,000 49,500 $ 60.500 Additional information: There were 42,000 common shares issued and outstanding at 31 December 2019. In March 2020, the company issued a 10% stock dividend, valued at market price per share of $7. In April 2020, Maple Leaf issued common stock for land, valued at $20,000. Other shares were issued for cash. The company sold equipment costing $26,500, with a net book value of $11,500. On 31 October 2020, Maple Leaf declared and paid cash dividend to common shareholders. Common shares with an average issuance price of $74,000 were retired for cash in December 2020. Discount amortization was $2,500 during the year. A portion of the bond payable was redeemed for cash. Assume that dividends paid are financing activities and that interest paid and received, and dividends received are operating transactions.
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Related Book For
Financial accounting
ISBN: 978-1118285909
IFRS Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
Posted Date:
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