Additional information regarding 2024: 1. Net income was $56,000. 2. A gain of $8,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 3. 4. A gain on disposal of $40,000 was recorded when an old building was sold for $54,000 cash. A new building was purchased for $366,000 and depreciation expense on buildings for the year was $55,000. Equipment costing $64,000 was purchased while a loss of $7,000 was recorded on equipment that was sold for $5,000. The equipment that was sold late in the year had accumulated depreciation of $16,000. 5. The company took out $207,000 of new bank loans during the year. 6. Dividends were declared and paid and no common shares were bought back by the company.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Blossom Ltd.
Statement of Financial Position
December 31
Assets
2024
2023
Cash
$29,000
$0
Accounts receivable
27,000
38,000
Inventory
34,000
57,000
Land
96,000
108,000
Buildings
528,000
262,000
Accumulated depreciation-buildings
(71,000) (102,000)
Equipment
74,000
38,000
Accumulated depreciation-equipment
(15,000)
(8,000)
Total assets
$702,000 $393,000
Liabilities and Shareholders' Equity
Bank indebtedness
$0
$8,000
Accounts payable
46,000
27,000
Income tax payable
Interest payable
3,000
2,000
6,000
7,000
Dividends payable
3,000
1,000
Bank loan payable-current portion
30,000
17,000
Bank loan payable-non-current portion
364,000
208,000
Common shares
198,000
90,000
Retained earnings
52,000
33,000
Total liabilities and shareholders' equity
$702,000 $393,000
Additional information regarding 2024:
A gain of $8,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year.
1.
Net income was $56,000.
2.
3.
4.
A gain on disposal of $40,000 was recorded when an old building was sold for $54,000 cash. A new building was purchased for
$366,000 and depreciation expense on buildings for the year was $55,000.
Equipment costing $64,000 was purchased while a loss of $7,000 was recorded on equipment that was sold for $5,000. The
equipment that was sold late in the year had accumulated depreciation of $16,000.
5.
The company took out $207,000 of new bank loans during the year.
6.
Dividends were declared and paid and no common shares were bought back by the company.
Transcribed Image Text:Blossom Ltd. Statement of Financial Position December 31 Assets 2024 2023 Cash $29,000 $0 Accounts receivable 27,000 38,000 Inventory 34,000 57,000 Land 96,000 108,000 Buildings 528,000 262,000 Accumulated depreciation-buildings (71,000) (102,000) Equipment 74,000 38,000 Accumulated depreciation-equipment (15,000) (8,000) Total assets $702,000 $393,000 Liabilities and Shareholders' Equity Bank indebtedness $0 $8,000 Accounts payable 46,000 27,000 Income tax payable Interest payable 3,000 2,000 6,000 7,000 Dividends payable 3,000 1,000 Bank loan payable-current portion 30,000 17,000 Bank loan payable-non-current portion 364,000 208,000 Common shares 198,000 90,000 Retained earnings 52,000 33,000 Total liabilities and shareholders' equity $702,000 $393,000 Additional information regarding 2024: A gain of $8,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. 1. Net income was $56,000. 2. 3. 4. A gain on disposal of $40,000 was recorded when an old building was sold for $54,000 cash. A new building was purchased for $366,000 and depreciation expense on buildings for the year was $55,000. Equipment costing $64,000 was purchased while a loss of $7,000 was recorded on equipment that was sold for $5,000. The equipment that was sold late in the year had accumulated depreciation of $16,000. 5. The company took out $207,000 of new bank loans during the year. 6. Dividends were declared and paid and no common shares were bought back by the company.
Depreciation Expense
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Purchase of Building
Purchase of Equipment
Proceeds from Disposal of Land
+A
31,000
(366,000)
(64,000)
Proceeds from Disposal of Building
54,000
Proceeds from Disposal of Equipment
Net Cash Used by Investing Activities
Cash Flows from Financing Activities
Repayments of Bank Loan
Issue of Common Shares
Additions to Bank Loan
Dividends Paid
+A
5,000
(156,000)
108,000
207,000
Transcribed Image Text:Depreciation Expense Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Building Purchase of Equipment Proceeds from Disposal of Land +A 31,000 (366,000) (64,000) Proceeds from Disposal of Building 54,000 Proceeds from Disposal of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Repayments of Bank Loan Issue of Common Shares Additions to Bank Loan Dividends Paid +A 5,000 (156,000) 108,000 207,000
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