Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

WXY&Z, Inc Balance Sheet as of 12/31/19 as of 12/31/18 Assets Current Assets Cash Accounts Receivable, net Inventory Prepaid Expenses Total Current Assets 4,025,000 200,000

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
WXY&Z, Inc Balance Sheet as of 12/31/19 as of 12/31/18 Assets Current Assets Cash Accounts Receivable, net Inventory Prepaid Expenses Total Current Assets 4,025,000 200,000 300,000 115,000 4,640,000 5,000,000 300,000 100,000 150,000 5,550,000 Land Equipment Accum Depr-equip Net Prop, Plant & Equip 25,000 650,000 (200,000) 475,000 100,000 300,000 (50,000) 350,000 Total Assets 5,115,000 5,900,000 Liabilities Current Liabilities Accounts Payable Accrued liabilities Unearned Revenues Total Current Liabilities 240,000 300,000 600,000 1,140,000 1,025,000 1,300,000 500,000 2,825,000 Bonds payable Discount on Bonds Payable Bonds payable, carrying value 650,000 (50,000) 600,000 Total Liabilities 1,740,000 2,825,000 Owner's Equity Common Stock - par APIC, Common Stock Retained Earnings Total Owners Equity 1 1,999,999 1,375,000 3,375,000 1,999,999 1,075,000 3,075,000 Total Liabilities & Owner's Equit 5,115,000 5,900,000 WXY&Z Corp Income Statement For the year ending December 31, 2019 1,250,000 675,000 575,000 Net Sales COGS Gross Profit Operating Expenses: General & Adminstrative Selling & Marketing Depreciation Exp Total Operating expenses Income from Operations Other Income & Expenses Gain on Sale of Land 60,000 20,000 150,000 230,000 345,000 5,000 Total Other Income 5,000 Net Income 350,000 ADD'1 Info: 1). Land was sold for $80,000 with a book value of $75,000 resulting in a $5,000 Gain. Land does not have accumulated depreciation associated with it. 2). A $100,000 Par value bond was issued in exchange for Equipment also worth $100,000 3). Cash from a $550,000 bond issued with a $50,000 discount was received 4). There were no equipment sales A/R 300,000 Inventory 100,000 200,000 300,000 A/P Prepaid Expenses 150,000 1,025,000 115,000 240,000 Unearned Rev Accured Liabilities 1,300,000 500,000 300,000 600,000 Accum Depr Land 100,000 50,000 25,000 200,000 Equipment 300,000 Bonds Payable 650,000 650,000 Retained earnings 1,075,000 Bond Discount 1,375,000 50,000 Cash Operating: subtotals: operating Investing: investing Financing: financing change in cash WXY&Z Corp Statement of Cash Flows For the year ending December 31, 2019 Cash flows from operating activities Adjustments to reconcile Net Income to Net Cash Net cash operating activities Cash flows from investing activities Net cash investing activities Cash flows from financing activities Net cash financing activities Net increase (decrease) in cash Cash at the beginning of year Cash at the end of year Non Cash Transactions

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Japanese Management Accounting Today Japanese Management And International Studies Volume 2

Authors: Masanobu Kosuga, Yasuhiro Monden, Shufuku Hiraoka, Yoshiyuki Nagasaka, Noriko Hoshi

1st Edition

9812700811, 978-9812700810

More Books

Students also viewed these Accounting questions