Question
The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows: 1 Dec. 31, 2016 Dec. 31, 2015 2 Assets
The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows:
1 |
| Dec. 31, 2016 | Dec. 31, 2015 |
2 | Assets |
|
|
3 | Cash | $918,000.00 | $964,800.00 |
4 | Accounts receivable (net) | 828,900.00 | 761,940.00 |
5 | Inventories | 1,268,460.00 | 1,162,980.00 |
6 | Prepaid expenses | 29,340.00 | 35,100.00 |
7 | Land | 315,900.00 | 479,700.00 |
8 | Buildings | 1,462,500.00 | 900,900.00 |
9 | Accumulated depreciation-buildings | (408,600.00) | (382,320.00) |
10 | Equipment | 512,280.00 | 454,680.00 |
11 | Accumulated depreciation-equipment | (141,300.00) | (158,760.00) |
12 | Total assets | $4,785,480.00 | $4,219,020.00 |
13 | Liabilities and Stockholders Equity |
|
|
14 | Accounts payable (merchandise creditors) | $922,500.00 | $958,320.00 |
15 | Bonds payable | 270,000.00 | 0.00 |
16 | Common stock, $25 par | 317,000.00 | 117,000.00 |
17 | Paid-in capital: Excess of issue price over parcommon stock | 758,000.00 | 558,000.00 |
18 | Retained earnings | 2,517,980.00 | 2,585,700.00 |
19 | Total liabilities and stockholders equity | $4,785,480.00 | $4,219,020.00 |
The noncurrent asset, noncurrent liability, and stockholders equity accounts for 2016 are as follows:
ACCOUNT Land
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 479,700 | |||
Apr. | 20 | Realized $151,200 cash from sale | 163,800 | 315,900 |
ACCOUNT Buildings
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 900,900 | |||
Apr. | 20 | Acquired for cash | 561,600 | 1,462,500 |
ACCOUNT Accumulated DepreciationBuildings
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 382,320 | |||
Dec. | 31 | Depreciation for year | 26,280 | 408,600 |
ACCOUNT Equipment
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 454,680 | |||
26 | Discarded, no salvage | 46,800 | 407,880 | |||
Aug. | 11 | Purchased for cash | 104,400 | 512,280 |
ACCOUNT Accumulated Depreciation Equipment
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 158,760 | |||
26 | Equipment discarded | 46,800 | 111,960 | |||
Dec. | 31 | Depreciation for year | 29,430 | 141,300 |
ACCOUNT Bonds Payable
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
May | 1 | Issued 20-year bonds | 270,000 | 270,000 |
ACCOUNT Common Stock $25 par
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 117,000 | |||
Dec. | 7 | Issued 8,000 shares of common stock for $50 per share | 200,000 | 317,000 |
ACCOUNT Paid-In Capital in Excess of ParCommon Stock
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 558,000 | |||
Dec. | 7 | Issued 8,000 shares of common stock for $50 per share | 200,000 | 758,000 |
ACCOUNT Retained Earnings
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
2016 | ||||||
Jan. | 1 | Balance | 2,585,700 | |||
Dec. | 31 | Net loss | 35,320 | 2,550,380 | ||
31 | Cash dividends | 32,400 | 2,517,980 |
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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