The net changes in the balance sheet accounts of Lisa Corporation for the year 2021 are shown below. Credit Debit $ 91,350 $127,050 82,110 13,965 77,910 23,940 26,250 220,500 Account Cash Short-term investments Accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Investment in subsidiary (equity method) Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Deferred tax liability 8% serial bonds Common stock, $10 par Additional paid-in capital Retained earnings-Appropriation for bonded indebtedness Retained earnings-Unappropriated 136,500 84,735 22,575 16,275 73,500 94,500 157,500 63,000 39,900 $675,780 $675,780 An analysis of the Retained Earnings-Unappropriated account follows: Retained earnings unappropriated, December 31, 2020 $1,365,000 Add: Net income 322,350 Transfer from appropriation for bonded indebtedness 63,000 Total $1,750,350 Deduct: Cash dividends $173,250 Stock dividend 252,000 425,250 Retained earnings unappropriated, December 31, 2021 $1,325,100 1. 2. 3. 4. 5. 6. On January 2, 2021 short-term investments (classified as available-for-sale) costing $127,050 were sold for $162,750. The company paid a cash dividend on February 1, 2021. Accounts receivable of $17,010 and $20,370 were considered uncollectible and written off in 2021 and 2020, respectively. Major repairs of $34,650 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2021. The wholly owned subsidiary reported a net loss for the year of $26,250. The loss was recorded by the parent. At January 1, 2021, the cash balance was $174,300. Prepare a statement of cash flows (indirect method) for the year ended December 31, 2021. Lisa Corporation has no securities which are classified as cash equivalents. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Lisa Corporation Statement of Cash Flows Increase (Decrease) in Cash Adjustments to reconcile net income to The net changes in the balance sheet accounts of Lisa Corporation for the year 2021 are shown below. Credit Debit $ 91,350 $127,050 82,110 13,965 77,910 23,940 26,250 220,500 Account Cash Short-term investments Accounts receivable Allowance for doubtful accounts Inventory Prepaid expenses Investment in subsidiary (equity method) Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Deferred tax liability 8% serial bonds Common stock, $10 par Additional paid-in capital Retained earnings-Appropriation for bonded indebtedness Retained earnings-Unappropriated 136,500 84,735 22,575 16,275 73,500 94,500 157,500 63,000 39,900 $675,780 $675,780 An analysis of the Retained Earnings-Unappropriated account follows: Retained earnings unappropriated, December 31, 2020 $1,365,000 Add: Net income 322,350 Transfer from appropriation for bonded indebtedness 63,000 Total $1,750,350 Deduct: Cash dividends $173,250 Stock dividend 252,000 425,250 Retained earnings unappropriated, December 31, 2021 $1,325,100 1. 2. 3. 4. 5. 6. On January 2, 2021 short-term investments (classified as available-for-sale) costing $127,050 were sold for $162,750. The company paid a cash dividend on February 1, 2021. Accounts receivable of $17,010 and $20,370 were considered uncollectible and written off in 2021 and 2020, respectively. Major repairs of $34,650 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2021. The wholly owned subsidiary reported a net loss for the year of $26,250. The loss was recorded by the parent. At January 1, 2021, the cash balance was $174,300. Prepare a statement of cash flows (indirect method) for the year ended December 31, 2021. Lisa Corporation has no securities which are classified as cash equivalents. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Lisa Corporation Statement of Cash Flows Increase (Decrease) in Cash Adjustments to reconcile net income to
