Bramble Inc. had the following balance sheet at December 31, 2019. BRAMBLE INC. BALANCE SHEET DECEMBER 31, 2019 Cash $24,640 Accounts payable $34,640 Accounts receivable 25,840 Notes payable (long-term) 45,640 Investments 36,640 Common stock 104,640 Plant assets (net) 81,000 Retained earnings 27,840 Land 44,640 $212,760 $212,760 During 2020, the following occurred. 1. Bramble Inc. sold part of its debt investment portfolio for $18,399. This transaction resulted in a gain of $6,799 for the firm. The company classifies these investments as available-for-sale. 2. A tract of land was purchased for $17,640 cash. 3. Long-term notes payable in the amount of $19,399 were retired before maturity by paying $19,399 cash. 4. An additional $23,399 in common stock was issued at par. 5. Dividends of $11,599 were declared and paid to stockholders. 6. Net income for 2020 was $36,640 after allowing for depreciation of $14,399. 7. Land was purchased through the issuance of $39,640 in bonds. 8. At December 31, 2020, Cash was $41,640, Accounts Receivable was $46,240, and Accounts Payable remained at $34,640. Prepare a statement of cash flows for 2020.
Bramble Inc. had the following balance sheet at December 31, 2019. BRAMBLE INC. BALANCE SHEET DECEMBER 31, 2019 Cash $24,640 Accounts payable $34,640 Accounts receivable 25,840 Notes payable (long-term) 45,640 Investments 36,640 Common stock 104,640 Plant assets (net) 81,000 Retained earnings 27,840 Land 44,640 $212,760 $212,760 During 2020, the following occurred. 1. Bramble Inc. sold part of its debt investment portfolio for $18,399. This transaction resulted in a gain of $6,799 for the firm. The company classifies these investments as available-for-sale. 2. A tract of land was purchased for $17,640 cash. 3. Long-term notes payable in the amount of $19,399 were retired before maturity by paying $19,399 cash. 4. An additional $23,399 in common stock was issued at par. 5. Dividends of $11,599 were declared and paid to stockholders. 6. Net income for 2020 was $36,640 after allowing for depreciation of $14,399. 7. Land was purchased through the issuance of $39,640 in bonds. 8. At December 31, 2020, Cash was $41,640, Accounts Receivable was $46,240, and Accounts Payable remained at $34,640. Prepare a statement of cash flows for 2020.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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Question
Bramble Inc. had the following balance sheet at December 31, 2019.
During 2020, the following occurred.
BRAMBLE INC.
BALANCE SHEET DECEMBER 31, 2019 |
||||||
Cash | $24,640 | Accounts payable | $34,640 | |||
25,840 | Notes payable (long-term) | 45,640 | ||||
Investments | 36,640 | Common stock | 104,640 | |||
Plant assets (net) | 81,000 | 27,840 | ||||
Land | 44,640 | $212,760 | ||||
$212,760 |
During 2020, the following occurred.
1. | Bramble Inc. sold part of its debt investment portfolio for $18,399. This transaction resulted in a gain of $6,799 for the firm. The company classifies these investments as available-for-sale. | |
2. | A tract of land was purchased for $17,640 cash. | |
3. | Long-term notes payable in the amount of $19,399 were retired before maturity by paying $19,399 cash. | |
4. | An additional $23,399 in common stock was issued at par. | |
5. | Dividends of $11,599 were declared and paid to stockholders. | |
6. | Net income for 2020 was $36,640 after allowing for |
|
7. | Land was purchased through the issuance of $39,640 in bonds. | |
8. | At December 31, 2020, Cash was $41,640, Accounts Receivable was $46,240, and Accounts Payable remained at $34,640. |
Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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