View Policies Current Attempt in Progress You have completed the field work in connection with your audit of Bramble Corporation for the year ended December 31, 2020. The balance sheet accounts at the beginning and end of the year are shown below. Dec. 31. 2020 Dec. 31 2019 Increase or (Decrease] Cash $357.600 ($24,120) $333.480 563.309 Accounts receivable 139,709 423,600 732.000 890040 158,040 Inventory Prepaid expenses 14.400 9.600 4,800 Investment in subsidiary 132.600 O 132,600 Cash surrender value of life insurance 2.765 2,160 605 Machinery 248.400 20,400 228.000 499.480 Buildings 642.240 152,760 Land 63.000 63.000 0 Patents 82.800 76.900 6,000 48.000 60.000 112,000 Copyrights Bond discount and issue cost 5,402 0 5,402 $3,026,436 $2,442.240 $584,196 Income taxes payable $108,300 $95.520 $ $12,780 23,136 Accounts payable 359.136 336,000 Dividends payable 84.000 0 B4,000 150,000 0 150,000 Bonds payable-8% Bonds payable-12% Allowance for doubtful accounts 0 120.000 (120,000) 42,360 48.000 (5,640 28,800 50B 800 490.000 207,600 156.000 51,600 Accumulated depreciation-building Accumulated depreciation-machinery Premium on bonds payable Common stock-no par 0 2.880 (2.BBO 1,411.440 1,743,840 ( (332,400) 130,800 Paid-in capital in excess of par-common stock 130,800 O Retained earnings-unappropriated 24,000 (540,000) 564,000 $3,026,436 $2,442,240 $584,196 STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 1.2020 Balance (deficit) January March 31, 2020 1.2020 Net income for first quarter of 2020 Transfer from paid-in capital $1540,000) 30,000 510.000 April Balance 0 December 31, 2020 Net income for last three quarters of 2020 Dividend declared-payable January 21, 2021 108,000 (94.000) Balance $24.000 Your working papers from the audit contain the following information: 1. On April 1, 2020, the existing deficit was written off against paid-in capital created by reducing the stated value of the no- par stock 2. On November 1, 2020, 35,520 shares of no-par stock were sold for $308,400. The board of directors voted to regard $5 per share as stated capital. A patent was purchased for $18,000 3. 4. During the year, machinery that had a cost basis of $19,480 and on which there was accumulated depreciation of $6,240 was sold for $10,800. No other plant assets were sold during the year. 5. 6. 7. The 12%, 20-year bonds were dated and issued on January 2, 2008. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were redeemed at 100.9 plus accrued interest on March 31, 2020. The 2%, 40-year bonds were dated January 1, 2020, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $1.007. of Crimson Company for 2020 shows a net income of $18.00anuary 2, 2020, for $120,000. The income statement Major repairs to buildings of $8,640 were charged to Accumulated Depreciation-Buildings. Interest paid in 2020 was $12.600 and income taxes paid were $40,000. B. 9. From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight-line amortization for bond interest. (Round answers to decimal places, eg 2,500. Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesises. (15.0000 From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the should be supported by schedules or general ledger accounts. The company uses straight-line amortization for bond interest. (Round answers to decimal places, eg 2,500. Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesiseg. (15.000 BRAMBLE CORPORATION Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to $ Supplemental disclosures of cash flow Information: $ $ View Policies Current Attempt in Progress You have completed the field work in connection with your audit of Bramble Corporation for the year ended December 31, 2020. The balance sheet accounts at the beginning and end of the year are shown below. Dec. 31. 2020 Dec. 31 2019 Increase or (Decrease] Cash $357.600 ($24,120) $333.480 563.309 Accounts receivable 139,709 423,600 732.000 890040 158,040 Inventory Prepaid expenses 14.400 9.600 4,800 Investment in subsidiary 132.600 O 132,600 Cash surrender value of life insurance 2.765 2,160 605 Machinery 248.400 20,400 228.000 499.480 Buildings 642.240 152,760 Land 63.000 63.000 0 Patents 82.800 76.900 6,000 48.000 60.000 112,000 Copyrights Bond discount and issue cost 5,402 0 5,402 $3,026,436 $2,442.240 $584,196 Income taxes payable $108,300 $95.520 $ $12,780 23,136 Accounts payable 359.136 336,000 Dividends payable 84.000 0 B4,000 150,000 0 150,000 Bonds payable-8% Bonds payable-12% Allowance for doubtful accounts 0 120.000 (120,000) 42,360 48.000 (5,640 28,800 50B 800 490.000 207,600 156.000 51,600 Accumulated depreciation-building Accumulated depreciation-machinery Premium on bonds payable Common stock-no par 0 2.880 (2.BBO 1,411.440 1,743,840 ( (332,400) 130,800 Paid-in capital in excess of par-common stock 130,800 O Retained earnings-unappropriated 24,000 (540,000) 564,000 $3,026,436 $2,442,240 $584,196 STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 1.2020 Balance (deficit) January March 31, 2020 1.2020 Net income for first quarter of 2020 Transfer from paid-in capital $1540,000) 30,000 510.000 April Balance 0 December 31, 2020 Net income for last three quarters of 2020 Dividend declared-payable January 21, 2021 108,000 (94.000) Balance $24.000 Your working papers from the audit contain the following information: 1. On April 1, 2020, the existing deficit was written off against paid-in capital created by reducing the stated value of the no- par stock 2. On November 1, 2020, 35,520 shares of no-par stock were sold for $308,400. The board of directors voted to regard $5 per share as stated capital. A patent was purchased for $18,000 3. 4. During the year, machinery that had a cost basis of $19,480 and on which there was accumulated depreciation of $6,240 was sold for $10,800. No other plant assets were sold during the year. 5. 6. 7. The 12%, 20-year bonds were dated and issued on January 2, 2008. Interest was payable on June 30 and December 31. They were sold originally at 106. These bonds were redeemed at 100.9 plus accrued interest on March 31, 2020. The 2%, 40-year bonds were dated January 1, 2020, and were sold on March 31 at 97 plus accrued interest. Interest is payable semiannually on June 30 and December 31. Expense of issuance was $1.007. of Crimson Company for 2020 shows a net income of $18.00anuary 2, 2020, for $120,000. The income statement Major repairs to buildings of $8,640 were charged to Accumulated Depreciation-Buildings. Interest paid in 2020 was $12.600 and income taxes paid were $40,000. B. 9. From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the principal computations should be supported by schedules or general ledger accounts. The company uses straight-line amortization for bond interest. (Round answers to decimal places, eg 2,500. Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesises. (15.0000 From the information given, prepare a statement of cash flows using the indirect method. A worksheet is not necessary, but the should be supported by schedules or general ledger accounts. The company uses straight-line amortization for bond interest. (Round answers to decimal places, eg 2,500. Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesiseg. (15.000 BRAMBLE CORPORATION Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to $ Supplemental disclosures of cash flow Information: $ $