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Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 40E
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The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net Income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-tere liabilities: Notes payable Stockholders equity: Common stock $1,570,000 599,000 17,000 18,000 64,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Retained earnings Total liabilities and stockholders equity $2,440,00 9,000 2,449,000 4. Declared and paid a cash dividend of $104,000. 5. Issued common stock for $44.000. 2,268,000 $181,000 2824 VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2024 $114,560 69,600 136,880 3,800 180,00 205,000 218,000 (119,008) 3836,200 $27.000 3,600 29,6 255,000 284,ved 217,000 5816,200 2823 $55,720 84,000 129,000 14,688 110,00 252,000 204,000 (102,00) $737.400 $82,00 2,400 32,00 241,000 Additional Information for 2024: 1. Purchased additional investment in stocks for $79,000. 2. Sold land for $56,000. The land originally was purchased for $47,000, resulting in a $9.000 gain being recorded at the time of the sale 240,000 140,000 $737,400 3. Purchased $14,000 in equipment by issuing a $14,000 long-term note payable to the seller. No cash was exchanged in the transaction. Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)
Transcribed Image Text:The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided VIRTUAL GAMING SYSTEMS Income Statement For the Year Ended December 31, 2024 Net sales Gain on sale of land Total revenues Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net Income Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Investments Land Equipment Accumulated depreciation Total assets Liabilities and stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-tere liabilities: Notes payable Stockholders equity: Common stock $1,570,000 599,000 17,000 18,000 64,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 Retained earnings Total liabilities and stockholders equity $2,440,00 9,000 2,449,000 4. Declared and paid a cash dividend of $104,000. 5. Issued common stock for $44.000. 2,268,000 $181,000 2824 VIRTUAL GAMING SYSTEMS Statement of Cash Flows For the Year Ended December 31, 2024 $114,560 69,600 136,880 3,800 180,00 205,000 218,000 (119,008) 3836,200 $27.000 3,600 29,6 255,000 284,ved 217,000 5816,200 2823 $55,720 84,000 129,000 14,688 110,00 252,000 204,000 (102,00) $737.400 $82,00 2,400 32,00 241,000 Additional Information for 2024: 1. Purchased additional investment in stocks for $79,000. 2. Sold land for $56,000. The land originally was purchased for $47,000, resulting in a $9.000 gain being recorded at the time of the sale 240,000 140,000 $737,400 3. Purchased $14,000 in equipment by issuing a $14,000 long-term note payable to the seller. No cash was exchanged in the transaction. Required: Prepare the statement of cash flows for Virtual Gaming Systems using the direct method. Disclose any noncash transactions in an accompanying note. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.)
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