Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare a statement of cash flows for the current year.

Prepare a statement of cash flows for the current year.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
See similar textbooks
icon
Related questions
Question
Problem 17-7 (AICPA Adapted) Kenwood Company provided the following comparative statement of financial position: 2017 2016 450,000 700,000 1,200,000 1,000,000 3,165,000 ( 500,000) 165,000 1,000,000 1,050,000 1,500,000 1,050,000 850,000 730,000 Cash Accounts receivable, net of allowance Inventory Land Property, plant and equipment Accumulated depreciation 500,000 1,050,000 1,300,000 1,625,000 2,900,000 ( 450,000) 150,000 1,350,000 Patent Accounts payable Accrued expenses Bonds payable Share capital, P5 par Share premium Retained earnings 1,300,000 1,000,000 1,250,000 1,165,000 1,010,000 Additional data 1. The net income for the current year was P1,095,000. 2. On February 2, the entity issued a 10% stock dividend to shareholders of record on January 15. The market price per share was P15. 3. On March 1, the entity issued 19,000 shares for land. The land had a fair value of P200,000. 4. The entity purchased long term bonds with face of P500,000. A gain on retirement of bonds was reported in the income statement in the amount of P50,000. 5. The entity sold equipment costing P265,000, with carrying amount of P115,000, for P95,000 cash. 6. On September 30, the entity declared and paid a P2.00 per share cash dividend to shareholders of record on August 1. 7. The entity purchased land for P425,000 cash. Required: Prepare a statement of cash flows for the current year. 569
Transcribed Image Text:Problem 17-7 (AICPA Adapted) Kenwood Company provided the following comparative statement of financial position: 2017 2016 450,000 700,000 1,200,000 1,000,000 3,165,000 ( 500,000) 165,000 1,000,000 1,050,000 1,500,000 1,050,000 850,000 730,000 Cash Accounts receivable, net of allowance Inventory Land Property, plant and equipment Accumulated depreciation 500,000 1,050,000 1,300,000 1,625,000 2,900,000 ( 450,000) 150,000 1,350,000 Patent Accounts payable Accrued expenses Bonds payable Share capital, P5 par Share premium Retained earnings 1,300,000 1,000,000 1,250,000 1,165,000 1,010,000 Additional data 1. The net income for the current year was P1,095,000. 2. On February 2, the entity issued a 10% stock dividend to shareholders of record on January 15. The market price per share was P15. 3. On March 1, the entity issued 19,000 shares for land. The land had a fair value of P200,000. 4. The entity purchased long term bonds with face of P500,000. A gain on retirement of bonds was reported in the income statement in the amount of P50,000. 5. The entity sold equipment costing P265,000, with carrying amount of P115,000, for P95,000 cash. 6. On September 30, the entity declared and paid a P2.00 per share cash dividend to shareholders of record on August 1. 7. The entity purchased land for P425,000 cash. Required: Prepare a statement of cash flows for the current year. 569
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS