Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

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

Auditing Compensation And Benefits Programs

Authors: Kelli W. Vito

1st Edition

0894136720, 978-0894136726

More Books

Students also viewed these Accounting questions

Question

2. Describe why we form relationships

Answered: 1 week ago

Question

5. Outline the predictable stages of most relationships

Answered: 1 week ago