Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below.] Comparative balance sheets for 2021 and 2020 and a statement of income for 2021
Required information
[The following information applies to the questions displayed below.] Comparative balance sheets for 2021 and 2020 and a statement of income for 2021 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
METAGROBOLIZE INDUSTRIES Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) | ||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Cash | $ | 1,175 | $ | 545 | ||||
Accounts receivable | 940 | 620 | ||||||
Inventory | 1,240 | 695 | ||||||
Land | 1,015 | 770 | ||||||
Building | 1,240 | 1,240 | ||||||
Less: Accumulated depreciation | (640 | ) | (440) | |||||
Equipment | 3,190 | 2,420 | ||||||
Less: Accumulated depreciation | (865 | ) | (650 | ) | ||||
Patent | 1,540 | 2,010 | ||||||
$ | 8,835 | $ | 7,210 | |||||
Liabilities | ||||||||
Accounts payable | $ | 1,090 | $ | 620 | ||||
Accrued liabilities | 640 | 480 | ||||||
Lease liabilityland | 470 | 0 | ||||||
Shareholders' Equity | ||||||||
Common stock | 3,320 | 3,170 | ||||||
Paid-in capitalexcess of par | 1,090 | 930 | ||||||
Retained earnings | 2,225 | 2,010 | ||||||
$ | 8,835 | $ | 7,210 | |||||
METAGROBOLIZE INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) | ||||||
Revenues | ||||||
Sales revenue | $ | 3,794 | ||||
Gain on sale of land | 107 | $ | 3,901 | |||
Expenses | ||||||
Cost of goods sold | $ | 770 | ||||
Depreciation expensebuilding | 200 | |||||
Depreciation expenseequipment | 638 | |||||
Loss on sale of equipment | 33 | |||||
Amortization of patent | 470 | |||||
Operating expenses | 670 | 2,781 | ||||
Net income | $ | 1,120 | ||||
Additional information from the accounting records:
- Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2021.
- During 2021, equipment with a cost of $470,000 (90% depreciated) was sold.
- The statement of shareholders' equity reveals reductions of $310,000 and $595,000 for stock dividends and cash dividends, respectively.
Required: Prepare the T-accounts for Metagrobolize Industries. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)
Required: Prepare the T-accounts for Metagrobolize Industries. (Enter your answers in thousands. (.e., 10,000 should be entered as 10).) Cash Beg. Bal Operating Activities: To suppliers Payment on lease Investing Activities: Financing Activities: End. Bal Accounts Receivable Inventory Beg. Bal Beg Bal End. Bal. End. Bal. Land Accumulated Depreciation - Buildings Beg. Bal. Beg. Bal End. Bal. End. Bal. Equipment Accumulated Depreciation - Equipment Beg Bal Beg. Bal End. Bal. End. Bal Patent Accounts Payable Beg. Bal Beg Bal End. Bal End. Bal. Accrued Liabilities Lease Liability - Land Beg Bal Beg. Bal End. Bal. End. Bal. Common Stock Paid-in Capital Beg Bal Beg Bal End, Bal End. Bal. Retained Earnings Sales Beg Bal Beg. Bal End. Bal End. Bal. Gain on Sale of Land Cost of Goods Sold Beg Bal Beg. Bal End, Bal End. Bal. Depreciation Expense - Building Depreciation Expense - Equipment Beg. Bal Beg. Bal End. Bal End. Bal. Loss on Sale of Equipment Amortization Expense Beg Bal Beg. Bal End. Bal End. Bal. Operating Expenses Net Income (Income Summary) Beg Bal Beg, Bal End, Bal End. Bal. Building Beg. Bal End. Bal. Prepare the statement of cash flows for Metagrobolize industries. Use the T-account method to assist in your analysis. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (l.e., 10,000 should be entered as 10).) METAGROBOLIZE INDUSTRIES Statement of Cash Flows For year ended December 31, 2021 ($ in 000s) Cash flows from operating activities: Cash inflows Cash outflows 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 Ner cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities: S 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started