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The comparative statement of financial position and income statement for Al Quds Company presented below. Al Quds Company. Comparative Statement of Financial Position December 31.
The comparative statement of financial position and income statement for Al Quds Company presented below.
Al Quds Company.
Comparative Statement of Financial Position
December 31.
2018
2019
Assets
262,000
270,000
Equipment
(109,000)
(118,000)
Accumulated Depreciation
9,000
10,000
Prepaid Insurance
46,000
52,000
Merchandise Inventory
107,000
123,000
Accounts Receivables
47,000
56,000
Cash
362,000
393,000
Total
Equity and Liabilities
200,000
213,000
Share Capital-Ordinary
7,000
30,000
Retained Earnings
130,000
120,000
Bonds Payable
9,000
5,000
Accrued Expense Payable
5,000
7,000
Income Tax Payable
11,000
18,000
Accounts Payable
362,000
393,000
Total
Al Quds Company
Income Statement
For the year ended December 31,2019
1,339,000
Net Sales
908,000
Cost of Goods Sold
431,000
Gross Profit
Add:
3,000
Gain on Equipment Sold
Less:
346,000
Operating Expense
24,000
Depreciation Expense
14,000
Interest Expense
12,000
Income Tax
38,000
Net Income
Additional Information:
1. Equipment with a cost of $24,000 and accumulated depreciation $15,000 was sold for $12,000 cash, and additional equipment was purchased for cash $32,000.
2. Bonds redeemed for cash. Additional ordinary shares issued for cash.
3. Dividends declared and paid for $15,000 cash.
Instructions:
Prepare Cash flow from Financing Activities for the year ended December 31, 2019
Cash flow from Financing Activities
Bonds Redemption 10,000
Issuance of ordinary shares 13,000
Cash dividends 15,000
Net Cash flow from financing 38,000
Cash flow from Financing Activities
Bonds Redemption (10,000)
Issuance of ordinary shares (13,000)
Cash dividends (15,000)
Net Cash flow from financing (38,000)
Cash flow from Financing Activities
Bonds Redemption 10,000
Issuance of ordinary shares 13,000
Cash dividends (15,000)
Net Cash flow from financing (8,000)
Cash flow from Financing Activities
Bonds Redemption (10,000)
Issuance of ordinary shares 13,000
Cash dividends (15,000)
Net Cash flow from financing (12,000)
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Becker CPA Exam Final Review Auditing
Authors: Becker
1st Edition
1943628521, 978-1943628520
