Required:1. Prepare the statement of cash flows for the current year ended December 31 using the direct method. (Amounts to be deductedshould be indicated with a minus sign.)HEADS UP COMPANYStatement of Cash FlowsFor the Year Ended December 31Cash Flows from Operating Activities:Cash Flows from Investing Activities:Cash Flows from Financing Activities: Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and incomestatement follow, along with additional information.Current YearPrevious YearBalance Sheet at December 31$ 5,920$ 3,7401,5704,100(1,160)$ 8,250CashAccounts ReceivableEquipmentAccumulated Depreciation-Equipment8104,510(1,320)$ 9,920Total AssetsAccounts PayableSalaries and Wages PayableNotes Payable (long-term)Common StockRetained Earnings$ 6905901,5004,1003,040$ 1,1007505004,1001,800Total Liabilities and Stockholders' Equity$ 9,920$ 8,250Income StatementService RevenueSalaries and Wages ExpenseDepreciation ExpenseIncome Tax Expense$ 41,30038,8001601,100Net Income$ 1,240Additional Data:a. Bought new hockey equipment for cash, $410.b. Borrowed $1,000 cash from the bank during the year.c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liabilityaccounts relating to income tax, assume that this expense was fully paid in cash.

Name: Required:1. Prepare the statement of cash flows for the current year
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Description: Required:1. Prepare the statement of cash flows for the current year ended December 31 using the direct method. (Amounts to be deductedshould be indicated with a minus sign.)HEADS UP COMPANYStatement of Cash FlowsFor the Year Ended December 31Cash F

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Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the direct method. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities:

Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the direct method. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5PA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...

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The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. Open the file CASHFLOW from the website for this book at cengagebrain.com. First, enter the formulas. Then, complete the worksheet in the manner described next. According to the problem, cash increased from 39,600 to 67,210 during the year. This is a 27,610 increase. To record this increase on the worksheet, move to row 17. Since this is the first account you are analyzing, enter the letter a in column C. Then enter 27610 in column D (a debit since cash increased). This brings the year-end balance (column G) to 67,210, its proper balance. Now move to the bottom part of the statement where you see the categories Operating Activities, Investing Activities, and so on. The credit side of the entry has to be entered here. The proper space for this cash entry is on row 59. Enter the letter a in cell E59 and 27610 in cell F59. Notice the totals at the bottom of the page (row 60) now agree. The next account balance that changed is accounts receivable. It increased by 9,035. To enter this change on the worksheet, enter the letter b in cell C18 and 9035 in cell D18 (again, a debit since accounts receivable increased). This brings the year-end balance in column G to 121,250, its proper balance. The change in accounts receivable balance is an operating activity adjustment (as explained in your textbook). Enter the credit side of this entry in cells E34 and F34, and enter the explanation Increase in accounts receivable in cell A34. Note: Your textbook probably shows Net income as the first item under Operating Activities. We will get to that later. The sequence in which you enter items on this worksheet is not important. All other balance sheet accounts must be analyzed in the same manner, placing appropriate debit or credit entries in the top part of the worksheet to obtain the proper balances in column G, and then entering the second side of the entry in the appropriate row on the bottom part of the worksheet. You should use letter references to identify all entries. Also, you must enter a description of the entry in column A under the appropriate activity category. Although a sequence of analyzing the balance sheet from top to bottom is suggested here, this order is not necessary. As mentioned earlier, your textbook may specify a different sequence. Also, note that some accounts may have both debit and credit adjustments to them. The worksheet is not a substitute for a statement of cash flows, but it does provide you with all the numbers you need to properly prepare one. You will be done with your analysis when: a. The individual account balances at December 31, 2013, as shown on the worksheet (column G) equal those shown in the given problem data. b. The transaction column totals are equal (cells D60 and F60). c. The sum of the operating, investing, and financing activities (cell G59) equals the change in cash (cell D59 or F59). When you are finished, enter your name in cell A1. Save your completed file as CASHFLOW2. Print the worksheet when done. Also print your formulas. Check figure: Total credits at 12/31/2013 (cell G31), 860,460.
The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal year, is as follows: Additional data obtained from the records of Prime Sports Gear are as follows: a. Net income for 2013 was 121,610. b. Depreciation reported on income statement for 2013 was 46,500. c. Purchased 165,000 of new equipment, putting 90,000 cash down and issuing 75,000 of bonds for the balance. d. Old equipment originally costing 19,500, with accumulated depreciation of 7,950, was sold for 8,000. e. Retired 60,000 of bonds. f. Declared cash dividends of 64,000. g. Issued 1,500 shares of common stock at 27 cash per share. You have been asked to prepare a statement of cash flows for Prime Sports Gear for 2013. Review the worksheet called CASHFLOW that has been provided to assist you in preparing the statement. The worksheet has been designed so that as you make entries in columns D and F, column G will be automatically updated. For example, FORMULA1 should be entered as =B17+D17F17. Columns C and E are to be used to enter letter references for each of the debit and credit entries on the worksheet.
Jada Company had the following transactions during the year: Purchased a machine for $500,000 using a long-term note to finance it Paid $500 for ordinary repair Purchased a patent for $45,000 cash Paid $200,000 cash for addition to an existing building Paid $60,000 for monthly salaries Paid $250 for routine maintenance on equipment Paid $10,000 for major repairs Depreciation expense recorded for the year is $25,000 If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jadas balance sheet resulting from this years transactions? What amount did Jada report on the income statement for expenses for the year?
The comparative balance sheets and income statements for Gypsy Company follow: Additional Data During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. RequiredPrepare a statement of cash flows using the indirect method (don’t forget the supplementary noncash activities shown after the statement).
kingbird, inc.had the following transactions. 1.sold land(cost$8320) for $10400.2. Issued common stock at par for $22900. 3.record depreciation on buildings for $12100.4.paid salaries of $6500.5. Issued $1000 of $1 par value common stock for equipment worth $9700.6. Sold equipment (cost $13400,accumulate depreciation $9380) for $1608 (a) for each transaction above, prepare the journal entry
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Please see the attachment for details: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:a. Net income, $190,000.b. Depreciation reported on the income statement, $115,000.c. Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 was discarded, with no salvage realized.d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.e. 40,000 shares of common stock were issued at $15 for cash.f. Cash dividends declared and paid, $50,000. InstructionsPrepare a statement of cash flows, using the indirect method.
THIS IS A RESUBMIT. THE PERSON WHO ANSWERED IT PREVIOUSLY DID NOT ANSWER CORRECTLY. The following items are taken from the financial statements of Blue Spruce Company for the year ending December 31, 2022: Accounts payable $ 17,200 Accounts receivable 7,000 Accumulated depreciation—equipment 5,000 Bonds payable 17,000 Cash 22,000 Common stock 26,400 Cost of goods sold 27,600 Depreciation expense 5,700 Dividends 5,200 Equipment 40,000 Interest expense 2,000 Patents 5,180 Retained earnings, January 1, 2022 5,700 Salaries and wages expense 5,300 Sales revenue 51,500 Supplies 2,820 Net income: $10, 900 Total assets: $72,000 Total liabilites and owners' equity: $72,000
The statement of the financial position of Happy Easter Enterprise given below did not agree andthe balance of GH¢26,940 was entered in the suspense account.HAPPY EASTER ENTERPRISESTATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2018Non-Current Assets: Cost Depreciation Net Book ValueGH¢ GH¢ GH¢Furniture & Fittings 90,000 36,000 54,000Delivery Van 12,000 6,000 6,000102,000 42,000 60,000Current Assets:Inventory 6,000Accounts receivable 12,000Cash at bank 300 18,300Current Liabilities:Accounts payable (7,200)Net current asset 11,100Net assets 71,100Financed By:Capital 12,000Net profit for the year 32,160Suspense account 26,94071,100Upon investigations, the following errors were discovered:(i) Accounts payable had been understated by GH¢6,000.(ii) The sales figure for the period was understated by GH¢540.(iii) The closing inventory amounted to GH¢7,200 but the amount stated in the statementof financial position was the beginning inventory.(iv) A loan from the D-Bank of GH¢3,000 was…
The following Statement of Financial Position is related to Jeff Berhad. Additional information: (1) During the year, depreciation for machinery is RM22,750. Machinery with a net value of RM2,760 was disposed at a profit of RM2,000. (2) Depreciation for office equipment during the year is RM5,520. Office equipment with cost of RM24,300 was sold for RM18,780. Loss on disposal of office equipment is RM2,760. (3) The net profit before tax is RM41,770. Tax charge for the year is RM17,250. (4) The cash dividends declared were RM26,910. In addition, the company received cash from issuance of share capital and debenture during the year. Required: (a) Based on the above information, prepare the Statement of Cash Flows for the year ended 31 December 2020 for Jeff Berhad using the indirect method. (b) Based on your understanding, discuss which method is the better way to present the Statement of Cash Flows: Direct Method or Indirect Method?
Parra Company completed its income statement and comparative balance sheet for the current year and provided the following information: Income Statement Service revenue $ 66,500 Expenses: Salaries $ 40,000 Depreciation 6,100 Utilities 5,100 Loss on sale of equipment 1,300 52,500 Net income $ 14,000 Partial Balance Sheet Current Year Prior Year Accounts receivable $ 12,900 $ 24,100 Salaries payable 19,100 11,100 Other accrued liabilities 5,800 10,300 Land 51,700 58,600 Present the operating activities section of the statement of cash flows for Parra Company using the indirect method. (List cash outflows as negative amounts.)
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Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page. Income Statements Year Ended December 31, 20X2 20X1 Sales 8000 5000 Cost of goods sold (COGS) 7300 4380 EBITDA 700 620 Depreciation and Amortization 200 120 EBIT 500 500 Interest Expense 75 100 EBT 425 400 Taxes (20%) 85 80 Net Income 340 320 Balance Sheets As of December 31, 20X2 20X1 Assets Current assets: Cash 300 20 Short term investments 460 100 Accounts receivable 640 400 Inventories 800 480 Total current assets 2200 1000 Net plant and equipment 1800 1500 Total assets 4000 2500 Liabilities and Stockholders' Equity Current liabilities: Notes…