Prepare the statement of cash flows for the year ended 31 December 2020, using the indirect method. Harold CorporationBalance SheetAt 31 Decemb er20202019$$AssetsCash56,50071,550Accounts Receivable74,10090,750Inventory519,000490,200Prepaid Rent17,10019,200Equipment278,250216,000Accumulated Depreciation - Equipment(108,750)(93,000)Building210,00090,000Accumulated DepreciationBuilding(52,250)(42,500)Total Assets993,950842,200Liabilities and Stockholders' EquityLiabilitie sAccounts Payable181,950123,450Unearned Revenue17,25011,250Notes Payable (long-term)242,500172,500Total Liabilities441,700307,200Stockholders' EquityCommon Stock483,000450,000Retained Earnings69,25085,000Total Stockholders' Equity552,250535,500Total Liabilities and Stockholders' Equity993,950842,200 Harold CorporationIncome StatementFor the Year Ended 31 December 2020$Revenue1,083,000Cost of goods sold585,000Operating expensesLoss on sale of equipment439,2002,100Tax expense9,450Net income47,250Additional Informationa. Depreciation expenses in 2020 was $46,350.b. A company purchased an equipment costing $113,250 by cash.c. An equipment with an original cost of $51,000 (its book value was $30,150) was soldfor $28,050 cash.d. Paid $50,000 to settle a note payable.e. Signed a 10-year promissory note of $120,000 in exchange for building.f A company received cash for all new shares issued in 2020.g. Dividends were declared and paid by cash.

Cash Flow Statement A statement that provides complete information about the liquidity of the firm…

Harold Corporation Balance Sheet At 31 December 2020 2019 $ $ Assets Cash 56,500 71,550 Accounts Receivable 74,100 90,750 Inventory 519,000 490,200 17,100 19,200 216,000 (93,000) 90,000 Prepaid Rent Equipment 278,250 Accumulated Depreciation - Equipment (108,750) 210,000 (52,250) 993,950 Building Accumulated Depreciation - Building (42,500) Total Assets 842,200 Liabilitie s and Stockholders' Equity Liabilities Accounts Payable 181,950 17,250 242,500 441,700 123,450 11,250 172,500 307,200 Unearned Revenue Notes Payable (long-term) Total Liabilitie s Stockholders' Equity Common Stock 483,000 69,250 552,250 450,000 85,000 535,500 Retained Earnings Total Stockholders' Equity Total Liabilitie s and Stockholders' Equity 993,950 842,200

Harold Corporation Balance Sheet At 31 December 2020 2019 $ $ Assets Cash 56,500 71,550 Accounts Receivable 74,100 90,750 Inventory 519,000 490,200 17,100 19,200 216,000 (93,000) 90,000 Prepaid Rent Equipment 278,250 Accumulated Depreciation - Equipment (108,750) 210,000 (52,250) 993,950 Building Accumulated Depreciation - Building (42,500) Total Assets 842,200 Liabilitie s and Stockholders' Equity Liabilities Accounts Payable 181,950 17,250 242,500 441,700 123,450 11,250 172,500 307,200 Unearned Revenue Notes Payable (long-term) Total Liabilitie s Stockholders' Equity Common Stock 483,000 69,250 552,250 450,000 85,000 535,500 Retained Earnings Total Stockholders' Equity Total Liabilitie s and Stockholders' Equity 993,950 842,200

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.10MCP

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