The net changes in the statement of financial position accounts of Pharoah Inc. for the calendar...

Transcribed Image Text:

The net changes in the statement of financial position accounts of Pharoah Inc. for the calendar year 2023 are shown below: Account Debit Credit Cash $64,300 Accounts receivable Allowance for expected credit losses $31,000 9,000 Inventory 110,100 Prepaid expenses 9,000 Long-term investments 71,000 Land 150,500 Buildings 301,000 Machinery 49,500 15,500 Office equipment Accumulated depreciation: Buildings 11,000 Machinery 9,000 Office equipment 7,500 Accounts payable 91,100 Accrued liabilities 35,000 Dividends payable 66,920 Bonds payable 418,080 Preferred shares 30,000 Common shares 189,600 Retained earnings $856,100 $856,100 43,100 Additional information: Additional information: 1. Net income for the year was $73,920. 2. Cash dividends of $66,920 were declared December 15, 2023, payable January 15, 2024. A 5% common stock dividend was issued March 31, 2023, when the market value was $22 per share. At the time there were 36,000 common shares outstanding. 3. The long-term investments were sold for $70,000. 4. A building which had cost $240,500, with a book value of $150,500, was sold for $201,000, and a new one was purchased. 5. The following entry was made to record an exchange of an old machine for a new one: Machinery 79,000 Accumulated Depreciation-Machinery 20,500 Machinery Cash 29,500 70,000 6. A fully depreciated copier machine, which cost $15,500, was written off. 7. Preferred shares originally issued for $30,000 were redeemed for $40,500. 8. Pharoah sold 6,000 common shares on June 15, 2023 for $25 a share. 9. Bonds were sold at 104 on December 31, 2023. 10. Land with a book value of $120,500 was sold for $56,000. Prepare a statement of cash flows (indirect method) for calendar 2023. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) The net changes in the statement of financial position accounts of Pharoah Inc. for the calendar year 2023 are shown below: Account Debit Credit Cash $64,300 Accounts receivable Allowance for expected credit losses $31,000 9,000 Inventory 110,100 Prepaid expenses 9,000 Long-term investments 71,000 Land 150,500 Buildings 301,000 Machinery 49,500 15,500 Office equipment Accumulated depreciation: Buildings 11,000 Machinery 9,000 Office equipment 7,500 Accounts payable 91,100 Accrued liabilities 35,000 Dividends payable 66,920 Bonds payable 418,080 Preferred shares 30,000 Common shares 189,600 Retained earnings $856,100 $856,100 43,100 Additional information: Additional information: 1. Net income for the year was $73,920. 2. Cash dividends of $66,920 were declared December 15, 2023, payable January 15, 2024. A 5% common stock dividend was issued March 31, 2023, when the market value was $22 per share. At the time there were 36,000 common shares outstanding. 3. The long-term investments were sold for $70,000. 4. A building which had cost $240,500, with a book value of $150,500, was sold for $201,000, and a new one was purchased. 5. The following entry was made to record an exchange of an old machine for a new one: Machinery 79,000 Accumulated Depreciation-Machinery 20,500 Machinery Cash 29,500 70,000 6. A fully depreciated copier machine, which cost $15,500, was written off. 7. Preferred shares originally issued for $30,000 were redeemed for $40,500. 8. Pharoah sold 6,000 common shares on June 15, 2023 for $25 a share. 9. Bonds were sold at 104 on December 31, 2023. 10. Land with a book value of $120,500 was sold for $56,000. Prepare a statement of cash flows (indirect method) for calendar 2023. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)