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The following partially completed spreadsheet has been prepared for Perrin Company's 2016 statement of cash flows: Balances Change Worksheet Entries Account Titles 12/31/15 12/31/16 Increase
The following partially completed spreadsheet has been prepared for Perrin Company's 2016 statement of cash flows:
Balances | Change | Worksheet Entries | |||
Account Titles | 12/31/15 | 12/31/16 | Increase (Decrease) | Debit | Credit |
Debits | |||||
Cash | 800 | 1,540 | |||
Noncash Accounts: | |||||
Accounts Receivable | 1,500 | 2,180 | |||
Inventory | 3,100 | 6,055 | |||
Investments in Stock | — | 2,800 | |||
Land | 6,000 | 9,200 | |||
Buildings | 20,000 | 20,000 | |||
Office Equipment | 4,000 | 6,100 | |||
Delivery Equipment | 3,000 | 5,900 | |||
Treasury Stock | — | 2,000 | |||
Totals | 38,400 | 55,775 | ? | ||
Credits | |||||
Accumulated Depreciation | 7,000 | 8,500 | |||
Accounts Payable | 3,300 | 3,695 | |||
Wages Payable | 600 | 500 | |||
Bonds Payable | — | 5,000 | |||
Premium on Bonds Payable | — | 240 | |||
Common Stock, $10 par | 6,000 | 8,200 | |||
Additional Paid-in Capital | 9,000 | 13,640 | |||
Retained Earnings | ? | ? | 3,500 | ||
Totals | 38,400 | 55,775 | ? |
- Additional relevant information:
Beginning retained earnings $12,500 Plus: Net income 8,000 $20,500 Less: Stock dividends $ 840 Cash dividends 3,660 (4,500) Ending retained earnings $16,000 - Accumulated depreciation is a contra account for all the depreciable assets. Depreciation on these assets totaled $2,200 for the year.
- On January 1, 2016, the company issued 10% bonds with a face value of $5,000 at 106. Interest was paid semiannually on June 30 and December 31. The bonds mature on January 1, 2021. Straight-line amortization is used for bond discount or premium. Bond interest expense was $440.
- Land was purchased for $3,200 during the year.
- Two hundred shares of common stock were issued for delivery equipment valued at $2,900 and office equipment valued at $3,100.
- Twenty shares of stock were issued as a stock dividend. The market price per share was $42.
- Office equipment with a cost of $1,000 and a book value of $300 was sold for $50.
- Fifty shares of its own common stock were reacquired by the company as treasury stock. The company purchased the shares for $40 per share.
- One hundred shares of Doe Company stock were purchased for $28 per share at year-end.
Required:
Complete the spreadsheet. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
PERRIN COMPANY Cash Flows Worksheet For Year Ended December 31, 2016 | |||||
---|---|---|---|---|---|
Balances | Worksheet Entries | ||||
Account Titles | 12/31/2015 | 12/31/2016 | Change | Debit | Credit |
Debits | |||||
Cash | 800 | 1,540 | |||
Noncash Accounts: | |||||
Accounts Receivable | 1,500 | 2,180 | |||
Inventory | 3,100 | 6,055 | |||
Investments in Stock | 2,800 | ||||
Land | 6,000 | 9,200 | |||
Buildings | 20,000 | 20,000 | |||
Office Equipment | 4,000 | 6,100 | |||
Delivery Equipment | 3,000 | 5,900 | |||
Treasury Stock | 2,000 | ||||
Totals | 38,400 | 55,775 | |||
Credits | |||||
Accumulated Depreciation | 7,000 | 8,500 | |||
Accounts Payable | 3,300 | 3,695 | |||
Wages Payable | 600 | 500 | |||
Bonds Payable | 5,000 | ||||
Premium on Bonds Payable | 240 | ||||
Common stock, $10 par | 6,000 | 8,200 | |||
Additional Paid-in Capital | 9,000 | 13,640 | |||
Retained Earnings | 3,500 | ||||
Totals | 38,400 | 55,775 |
Worksheet Entries | ||
---|---|---|
Debit | Credit | |
Cash Flows from Operating Activities: | ||
Cash Flows from Investing Activities: | ||
Cash Flows from Financing Activities: | ||
Investing and Financing Activities Not Affecting Cash: | ||
Totals |
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