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The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: 1 Dec. 31, 20Y2 Dec. 31, 20Y1 2 Assets

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

1

Dec. 31, 20Y2

Dec. 31, 20Y1

2

Assets

3

Cash

$918,330.00

$965,220.00

4

Accounts receivable (net)

828,620.00

761,010.00

5

Inventories

1,268,630.00

1,162,990.00

6

Prepaid expenses

30,290.00

35,390.00

7

Land

315,080.00

478,880.00

8

Buildings

1,462,320.00

899,910.00

9

Accumulated depreciation-buildings

(408,210.00)

(382,220.00)

10

Equipment

511,480.00

454,920.00

11

Accumulated depreciation-equipment

(140,580.00)

(159,440.00)

12

Total assets

$4,785,960.00

$4,216,660.00

13

Liabilities and Stockholders Equity

14

Accounts payable (merchandise creditors)

$923,090.00

$958,100.00

15

Bonds payable

269,000.00

0.00

16

Common stock, $25 par

325,500.00

118,000.00

17

Paid-in capital: Excess of issue price over parcommon stock

766,500.00

559,000.00

18

Retained earnings

2,501,870.00

2,581,560.00

19

Total liabilities and stockholders equity

$4,785,960.00

$4,216,660.00

The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows:

ACCOUNT Land

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 478,880
Apr. 20 Realized $150,210 cash from sale 163,800 315,080

ACCOUNT Buildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 899,910
Apr. 20 Acquired for cash 562,410 1,462,320

ACCOUNT Accumulated DepreciationBuildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 382,220
Dec. 31 Depreciation for year 25,990 408,210

ACCOUNT Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 454,920
26 Discarded, no salvage 47,120 407,800
Aug. 11 Purchased for cash 103,680 511,480

ACCOUNT Accumulated Depreciation Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 159,440
26 Equipment discarded 47,120 112,320
Dec. 31 Depreciation for year 28,260 140,580

ACCOUNT Bonds Payable

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
May 1 Issued 20-year bonds 269,000 269,000

ACCOUNT Common Stock $25 par

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 118,000
Dec. 7 Issued 8,300 shares of common stock for $50 per share 207,500 325,500

ACCOUNT Paid-In Capital in Excess of ParCommon Stock

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 559,000
Dec. 7 Issued 8,300 shares of common stock for $50 per share 207,500 766,500

ACCOUNT Retained Earnings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 2,581,560
Dec. 31 Net loss 47,830 2,533,730
31 Cash dividends 31,860 2,501,870

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.

Labels and Amount Descriptions

Cash used for acquisition of building
Cash used for dividends
Cash used for merchandise
Cash used for purchase of equipment
Cash from customers
Cash from issuance of bonds payable
Cash from issuance of common stock
Cash from land sold
December 31, 20Y2
Decrease in accounts payable
Decrease in accounts receivable
Decrease in cash
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
For the Year Ended December 31, 20Y2
Gain on sale of investments
Gain on sale of land
Increase in accounts payable
Increase in accounts receivable
Increase in cash
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Issuance of common stock for acquisition of building
Issuance of common stock for purchase of equipment
Issuance of common stock to retire bonds
Loss on sale of investments
Loss on sale of land
Net cash flow from financing activities
Net cash flow from investing activities
Net cash flow from operating activities
Net cash flow used for financing activities
Net cash flow used for investing activities
Net cash flow used for operating activities
Net income
Net loss

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.

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