The condensed income statement and comparative balance sheet of Jackson Corporation as of December 31, 2016 and

Question:

The condensed income statement and comparative balance sheet of Jackson Corporation as of December 31, 2016 and 2015, are provided below. Other financial data is also given.

The condensed income statement and comparative balance sheet of Jackson

INSTRUCTIONS
Prepare a statement of cash flows for Jackson Corporation for 2016. Additional information for the year that is pertinent to its preparation follows:
a. No items of property, plant, and equipment were disposed of during the year.
b. Paid cash for the additions to property, plant, and equipment during the year.
c. Paid $11,000 dividends on the common stock in cash during the year.
d. Issued common stock at par value for cash.
e. Paid cash to retire the long-term note payable.
Analyze:
If Jackson Corporation had written off an uncollectible account receivable of $5,500 during this fiscal period, what adjustment, if any, would be required on the statement of cash flows?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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