Shamrock Corporation's balance sheet at the end of 2019 included the following items. Current assets (Cash $82,000) Land Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment Patents Total $236,440 32,620 121,440 92,620 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. (31,440) (11,000) 41,440 $482,120 The following information is available for 2020. Current liabilities Bonds payable Common stock Retained earnings Total $151,440 101,440 182,620 46,620 $482,120 Net income was $53,950. Equipment (cost $21,440 and accumulated depreciation $9,440) was sold for $11,440. Depreciation expense was $5,440 on the building and $10,440 on equipment. Patent amortization was $2,500. Current assets other than cash increased by $29,000. Current liabilities increased by $14,440. An addition to the building was completed at a cost of $28,440. A long-term investment in stock was purchased for $16,000. Bonds payable of $52,620 were issued. Cash dividends of $30,000 were declared and paid. Treasury stock was purchased at a cost of $11,000.

Shamrock Corporation's balance sheet at the end of 2019 included the following items. Current assets (Cash $82,000) Land Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment Patents Total $236,440 32,620 121,440 92,620 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. (31,440) (11,000) 41,440 $482,120 The following information is available for 2020. Current liabilities Bonds payable Common stock Retained earnings Total $151,440 101,440 182,620 46,620 $482,120 Net income was $53,950. Equipment (cost $21,440 and accumulated depreciation $9,440) was sold for $11,440. Depreciation expense was $5,440 on the building and $10,440 on equipment. Patent amortization was $2,500. Current assets other than cash increased by $29,000. Current liabilities increased by $14,440. An addition to the building was completed at a cost of $28,440. A long-term investment in stock was purchased for $16,000. Bonds payable of $52,620 were issued. Cash dividends of $30,000 were declared and paid. Treasury stock was purchased at a cost of $11,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 9E: Partially Completed Spreadsheet Hanks Company has prepared the following changes in account balances...

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Investing Activities and Depreciable Assets Verlando Company had the following account balances and information available for 2019: During 2019, Verlando recorded the following transactions affecting these accounts: a. Land with a carrying value of 35,000 was sold at a loss of 6,000. b. Land and equipment were purchased with cash during the period. c. Equipment with an original cost of 20,000 that had a book value of 4,000 was written off as obsolete. d. A building with an original cost of 60,000 and accumulated depreciation of 25,000 was sold at a 23,000 gain. e. Depreciation expense and amortization expense were recorded. f. Net income for the year was 60,000. g. A patent was acquired during the year in exchange for 1,200 shares of common stock with a par value of 1 per share and a market value of 26 per share. h. Additional marketable securities wefe purchased during the year. i. Verlando Company has no notes payable in the liabilities section of its balance sheet. Required: 1. Next Level Assuming that Verlando uses the indirect method to determine operating cash flows, what is the amount of depreciation expense and amortization expense that would be added back to net income: 2. Prepare the investing activities section of the statement of cash flows for the year ended December 31, 2019. 3. Prepare the disclosure for significant noncash transactions for the statement of cash flows for the year ended December 31, 2019.
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