Question
X-cell Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding X-cell
X-cell Inc. began operations on January 1, 2013. Its adjusted trial balance at December 31, 2014 and 2015 is shown below. Other information regarding X-cell Inc. and its activities during 2015 follow in (a) through (e) :
Assume all accounts have normal balances.
$19,000 of the long-term notes payable will be paid during 2016.
Equipment was sold for cash of $17,200.
Old machinery was sold for cash of $21,400. New machinery was purchased for $41,000 cash.
Common shares were issued for cash.
Cash dividends were declared and paid.
X-cell Inc.Adjusted Trial Balance December 31 2015 2014 Account
Accounts Payable 83,710 73,000
Accounts Receivable 57,700 79,500
Accumulated Depreciation, Equipment 1,300 81,500
Accumulated Depreciation, Machinery 9,500 91,000
Allowance for Doubtful Accounts 5,700 13,500
Depreciation Expense, Equipment 9,500 9,500
Depreciation Expense, Machinery 9,800 9,800
Cash 329,650 285,000
Cash Dividends 45,000 45,000
Common Shares 140,000 100,000
Equipment 9,300 118,000
Machinery 61,700 133,000
Merchandise Inventory 119,260 109,500
Long-term Notes Payable 77,720 90,000
Other Expenses (including losses) 740,000 30,000
Preferred Shares 178,000 178,000
Retained earnings 59,000 50,000
Revenues (including gains) 783,300 103,300
Unearned Revenue 43,680 39,000
Required: |
Using the information provided, prepare a statement of cash flows (using the indirect method) for the year ended December 31, 2015 and a classified balance sheet at December 31, 2015.
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