P1-5 Using Financial Reports: Applying the Accounting Equation to Liquidate a Company LO1-1 On June 1, 2021, Bland Corporation prepared a statement of financial position just prior to going out of business. The totals for the three main components showed the following: Assets (no cash) Liabilities Shareholders' equity Shortly thereafter, all of the assets were sold for cash. Required: 1. How would the statement of financial position appear immediately after the sale of the assets for cash for each of the following cases? (Enter any decreases to account balances with a minus sign.) Case A Case B Case C Case D Cash Received for the Assets $ $136,000 73,000 63,000 136,000 123,000 149,000 55,000 Balances Immediately after Sale Liabilities Assets Shareholders Equity

P1-5 Using Financial Reports: Applying the Accounting Equation to Liquidate a Company LO1-1 On June 1, 2021, Bland Corporation prepared a statement of financial position just prior to going out of business. The totals for the three main components showed the following: Assets (no cash) Liabilities Shareholders' equity Shortly thereafter, all of the assets were sold for cash. Required: 1. How would the statement of financial position appear immediately after the sale of the assets for cash for each of the following cases? (Enter any decreases to account balances with a minus sign.) Case A Case B Case C Case D Cash Received for the Assets $ $136,000 73,000 63,000 136,000 123,000 149,000 55,000 Balances Immediately after Sale Liabilities Assets Shareholders Equity

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 2.14E

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MASTERY PROBLEM Financial statements for Peachfield Corporation as well as additional information relevant to cash flows during the period follow. Additional information: 1. Office equipment was sold during the year for 75,000. 2. Depreciation expense for the year was 62,400 as follows: 3. No other equipment was sold during the year. The following purchases were made for cash. 4. Declared and paid cash dividends of 20,000. 5. Issued 11,200 shares of 10 par common stock for 118,000. 6. Issued a note payable for 10,700. 7. Additional store equipment was acquired by issuing a long-term note payable for 20,000. REQUIRED 1. Prepare a statement of cash flows explaining the change in cash and cash equivalents. 2. Reconcile cash and cash equivalents at the bottom of the statement of cash flows.
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