Answered step by step
Verified Expert Solution
Question
1 Approved Answer
what is its expected free P16A-36A Preparing the statement of cash flows-direct method Boundary Rare Coins (BRC) was formed on January 1, 2018. Additional data
what is its expected free P16A-36A Preparing the statement of cash flows-direct method Boundary Rare Coins (BRC) was formed on January 1, 2018. Additional data for the year follow: a. On January 1, 2018, BRC issued no par common stock for $475,000. b. Early in January, BRC made the following cash payments: 1. For store fixtures, $53,000 2. For merchandise inventory, $260,000 3. For rent expense on the store building, $13,000 c. Later in the year, BRC purchased merchandise inventory on account for $240,000. Before year-end, BRC paid $160,000 of this accounts payable. d. During 2018, BRC sold 2,200 units of merchandise inventory for $450 each. Before year-end, the company collected 85% of this amount. Cost of goods sold for the year was $330,000, and ending merchandise inventory totaled $170,000. nairoll is $80.000 of which year was $330,000, and ending merchandise inventory totaled $170,000. e. The store employs three people. The combined annual payroll is $80,000, of which BRC still owes $4,000 at year-end. f. At the end of the year, BRC paid income tax of $24,000. There are no income taxes payable. years, g. Late in 2018, BRC paid cash dividends of $40,000. h. For store fixtures, BRC uses the straight-line depreciation method, over five with zero residual value. Requirements 1. Prepare BRC's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together. 2. Prepare BRC's balance sheet at December 31, 2018. 3. Prepare BRC's statement of cash flows for the year ended December 31, 2018. . Format cash flows from operating activities by the direct method. method
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