Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below. Extra Surplus Company Balance Sheet December
The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below. Extra Surplus Company Balance Sheet December 31, 2017 Assets Cash Accounts Receivable Inventory Property and Equipment, Net $ 10,500 5,250 12,600 21,000 $49,350 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings $ 10,500 5,250 21,000 12,600 $ 49,350 Extra Surplus Company Income Statement For the Year Ended December 31, 2018 Sales $14,300 Cost of Goods Sold 3,300 Salaries and Wage Expense 3,300 Interest Expense 1,100 Other Expenses 550 Net Income $ 6,050 Additional data: Sales were $14,300; $8,800 in cash was received from customers. Bought new land for cash, $11,000. Sold other land for its book value of $5,500. Paid $1,100 principal on the long-term note payable and $1,100 in interest. Issued new shares of stock for $11,000 cash. Cash dividends of $1,200 were declared and paid to stockholders. Paid $6,100 on accounts payable. No inventory purchases were made; other expenses were incurred on account. All wages were paid in cash. Other expenses were on account. Required: a. Prepare a balance sheet at December 31, 2018. b. Prepare the statement of cash flows using the direct method. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a balance sheet at December 31, 2018. EXTRA SURPLUS COMPANY Balance Sheet at December 31 2018 Cash EXTRA SURPLUS COMPANY Statement of Cash Flows Year Ended December 31, 2018 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities: 1,500 10.500 12.000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started