Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 2012 Dec. 31, 2011 Assets Cash $

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribed

image text in transcribedimage text in transcribed

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 2012 Dec. 31, 2011 Assets Cash $ 550,950 $ 591,550 Accounts receivable (net) 501,360 457,290 Inventories 760,310 699,710 Prepaid expenses 17,630 20,940 Land 189,530 286,490 876,010 539,930 Buildings Accumulated depreciation-buildings (247,930) (231,400) Equipment 308,530 272,720 (95,310) Accumulated depreciation-equipment (84,850) Total assets $2,871,540 $2,541,920 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 545,590 $ 575,740 Bonds payable 160,810 0 Common stock, $20 par 190,000 70,000 Excess of paid-in capital over par 455,000 335,000 Retained earnings 1,520,140 1,561,180 Total liabilities and stockholders' equity $2,871,540 $2,541,920 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 286,490 Apr. 20 Realized $90,200 cash from sale 96,960 189,530 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 539,930 Apr. 20 Acquired for cash 336,080 876,010 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 231,400 Dec. 31 Depreciation for year 16,530 247,930 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 272,720 30,000 242,720 Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 65,810 308,530 ACCOUNT Accumulated Depreciation Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 95,310 Jan. 26 Equipment discarded 30,000 65,310 Dec. 31 Depreciation for year 19,540 84,850 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 May 1 Issued 15-year bonds 160,810 160,810 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 70,000 120,000 190,000 Dec. 7 Issued 6,000 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 335,000 Dec. 7 Issued 6,000 shares of common 120,000 455,000 stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,561,180 Dec. 31 Net loss 19,760 1,541,420 21,280 1,520,140 Dec. 31 Cash dividends Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Whitman Co. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from (used for) operating activities: Adjustments to reconcile net loss to net cash flows from (used for) operating activities: Changes in current operatina assets and liabilities: Changes in current operating assets and liabilities: Net cash flows used for operating activities Cash flows from (used for) investing activities: o 000 DO 1000 . Net cash flows used for investing activities Cash flows from (used for) financing activities: Net cash flows from financing activities Cash balance, January 1, 20Y2 Cash balance, December 31, 20Y2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction accounting and financial management

Authors: Steven j. Peterson

2nd Edition

135017114, 978-0135017111

More Books

Students also viewed these Accounting questions