Question
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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