Question 3 [70 points] Callaho Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding Callaho Inc. and its activities during 2015 follow in (a) through (f): a. Assume all accounts have normal balances. b. $9,000 of the long-term notes payable will be paid during 2016, c. Equipment was sold for cash of $14,900. d. Old machinery was sold for cash of $57,100. New machinery was purchased for $27,000 cash. e. Share capital was issued for cash. f. Cash dividends were declared and paid. Using the information provided, prepare a statement of changes in equity, a classified balance sheet, and a statement of cash flows (using the indirect method) for the year ended December 31, 2015. (select one) Statement of Changes in Equity (select one) Callaho Inc. Share Retained Total Adjusted Trial Balance Capital Earnings Equity December 31 Account 2015 2014 Accounts Payable 58,020 74,000 Accounts Receivable. 71.400 94,375 Accumulated Depreciation, Equipment 2,900 85,500 Accumulated Depreciation, Machinery 7,300 47,500 (select one) Balance Sheet Allowance for Doubtful Accounts........... 5,400 13,375 Depreciation Expense, Equipment... 7,900 7,900 (select one) Depreciation Expense, Machinery.. 9,800 9,800 Cash 335,220 290,000 Cash Dividends 52,000 52,000 Equipment..... 25,500 130,000 Machinery......... 66,000 149,000 Merchandise Inventory......... 130,180 114,000 Long-term Notes Payable............ 81,430 94,000 Other Expenses (including losses)..... 520,000 10,000 (select one) Retained earnings. 77,000 89,000 Statement of Cash Flows (select one) Revenues (including gains).......... 565,700 67,700 Share capital 387,000 342,000 Uneamed Revenue--.............. 33,250 44,000 Question 3 [70 points] Callaho Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding Callaho Inc. and its activities during 2015 follow in (a) through (f): a. Assume all accounts have normal balances. b. $9,000 of the long-term notes payable will be paid during 2016, c. Equipment was sold for cash of $14,900. d. Old machinery was sold for cash of $57,100. New machinery was purchased for $27,000 cash. e. Share capital was issued for cash. f. Cash dividends were declared and paid. Using the information provided, prepare a statement of changes in equity, a classified balance sheet, and a statement of cash flows (using the indirect method) for the year ended December 31, 2015. (select one) Statement of Changes in Equity (select one) Callaho Inc. Share Retained Total Adjusted Trial Balance Capital Earnings Equity December 31 Account 2015 2014 Accounts Payable 58,020 74,000 Accounts Receivable. 71.400 94,375 Accumulated Depreciation, Equipment 2,900 85,500 Accumulated Depreciation, Machinery 7,300 47,500 (select one) Balance Sheet Allowance for Doubtful Accounts........... 5,400 13,375 Depreciation Expense, Equipment... 7,900 7,900 (select one) Depreciation Expense, Machinery.. 9,800 9,800 Cash 335,220 290,000 Cash Dividends 52,000 52,000 Equipment..... 25,500 130,000 Machinery......... 66,000 149,000 Merchandise Inventory......... 130,180 114,000 Long-term Notes Payable............ 81,430 94,000 Other Expenses (including losses)..... 520,000 10,000 (select one) Retained earnings. 77,000 89,000 Statement of Cash Flows (select one) Revenues (including gains).......... 565,700 67,700 Share capital 387,000 342,000 Uneamed Revenue--.............. 33,250 44,000
