Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 552,690 $ 594,240 Accounts receivable (net) 502,950 458,730 Inventories 762,710 701,920 Prepaid expenses 17,690 21,000 Land 190,130 287,400 Buildings 878,780 541,640 Accumulated depreciation-buildings (248,710) (232,130) Equipment 309,510 273,580 Accumulated depreciation-equipment (85,110) (95,620) Total assets $2,880,640 $2,550,760 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 547,320 $ 577,560 Bonds payable 161,320 0 Common stock, $20 par 190,000 70,000 Paid-in capital: Excess of issue price over par-common stock 456,000 336,000 Retained earnings 1,526,000 1,567,200 Total liabilities and stockholders’ equity $2,880,640 $2,550,760 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 287,400 Apr. 20 Realized $90,500 cash from sale 97,270 190,130 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 541,640 Apr. 20 Acquired for cash 337,140 878,780 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 232,130 Dec. 31 Depreciation for year 16,580 248,710 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 273,580 Jan. 26 Discarded, no salvage 30,100 243,480 Aug. 11 Purchased for cash 66,030 309,510 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 95,620 Jan. 26 Equipment discarded 30,100 65,520 Dec. 31 Depreciation for year 19,590 85,110 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 161,320 161,320 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 70,000 Dec. 7 Issued 6,000 shares of commonstock for $40 per share 120,000 190,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 336,000 Dec. 7 Issued 6,000 shares of commonstock for $40 per share 120,000 456,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,567,200 Dec. 31 Net loss 19,840 1,547,360 Dec. 31 Cash dividends 21,360 1,526,000
Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 552,690 $ 594,240 Accounts receivable (net) 502,950 458,730 Inventories 762,710 701,920 Prepaid expenses 17,690 21,000 Land 190,130 287,400 Buildings 878,780 541,640 Accumulated depreciation-buildings (248,710) (232,130) Equipment 309,510 273,580 Accumulated depreciation-equipment (85,110) (95,620) Total assets $2,880,640 $2,550,760 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 547,320 $ 577,560 Bonds payable 161,320 0 Common stock, $20 par 190,000 70,000 Paid-in capital: Excess of issue price over par-common stock 456,000 336,000 Retained earnings 1,526,000 1,567,200 Total liabilities and stockholders’ equity $2,880,640 $2,550,760 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 287,400 Apr. 20 Realized $90,500 cash from sale 97,270 190,130 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 541,640 Apr. 20 Acquired for cash 337,140 878,780 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 232,130 Dec. 31 Depreciation for year 16,580 248,710 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 273,580 Jan. 26 Discarded, no salvage 30,100 243,480 Aug. 11 Purchased for cash 66,030 309,510 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 95,620 Jan. 26 Equipment discarded 30,100 65,520 Dec. 31 Depreciation for year 19,590 85,110 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 161,320 161,320 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 70,000 Dec. 7 Issued 6,000 shares of commonstock for $40 per share 120,000 190,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 336,000 Dec. 7 Issued 6,000 shares of commonstock for $40 per share 120,000 456,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,567,200 Dec. 31 Net loss 19,840 1,547,360 Dec. 31 Cash dividends 21,360 1,526,000
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PA: Statement of cash flowsindirect method The comparative balance sheet of Whitman Co. at December 31,...
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Statement of Cash Flows—Indirect Method
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
Dec. 31, 20Y2 | Dec. 31, 20Y1 | ||||
Assets | |||||
Cash | $ 552,690 | $ 594,240 | |||
502,950 | 458,730 | ||||
Inventories | 762,710 | 701,920 | |||
Prepaid expenses | 17,690 | 21,000 | |||
Land | 190,130 | 287,400 | |||
Buildings | 878,780 | 541,640 | |||
(248,710) | (232,130) | ||||
Equipment | 309,510 | 273,580 | |||
Accumulated depreciation-equipment | (85,110) | (95,620) | |||
Total assets | $2,880,640 | $2,550,760 | |||
Liabilities and |
|||||
Accounts payable (merchandise creditors) | $ 547,320 | $ 577,560 | |||
Bonds payable | 161,320 | 0 | |||
Common stock, $20 par | 190,000 | 70,000 | |||
Paid-in capital: Excess of issue price over par-common stock | 456,000 | 336,000 | |||
1,526,000 | 1,567,200 | ||||
Total liabilities and stockholders’ equity | $2,880,640 | $2,550,760 |
The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows:
ACCOUNT Land | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 287,400 | |||
Apr. 20 | Realized $90,500 cash from sale | 97,270 | 190,130 |
ACCOUNT Buildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 541,640 | |||
Apr. 20 | Acquired for cash | 337,140 | 878,780 |
ACCOUNT Accumulated Depreciation-Buildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 232,130 | |||
Dec. 31 | Depreciation for year | 16,580 | 248,710 |
ACCOUNT Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 273,580 | |||
Jan. 26 | Discarded, no salvage | 30,100 | 243,480 | ||
Aug. 11 | Purchased for cash | 66,030 | 309,510 |
ACCOUNT Accumulated Depreciation-Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 95,620 | |||
Jan. 26 | Equipment discarded | 30,100 | 65,520 | ||
Dec. 31 | Depreciation for year | 19,590 | 85,110 |
ACCOUNT Bonds Payable | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
May 1 | Issued 20-year bonds | 161,320 | 161,320 |
ACCOUNT Common Stock, $20 par | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 70,000 | |||
Dec. 7 | Issued 6,000 shares of common stock for $40 per share |
120,000 | 190,000 |
ACCOUNT Paid-in Capital in Excess of Par-Common Stock | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 336,000 | |||
Dec. 7 | Issued 6,000 shares of common stock for $40 per share |
120,000 | 456,000 |
ACCOUNT Retained Earnings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 1,567,200 | |||
Dec. 31 | Net loss | 19,840 | 1,547,360 | ||
Dec. 31 | Cash dividends | 21,360 | 1,526,000 |
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