The following are the Balance Sheets for Larry's Landscaping as of May 31, 2021 (the end of last period) and June 30, 2021 (the end of this period): June 30, 2021 May 31, 2021 Assets Cash $ 25,000 9,500 1,600 2,700 38,800 94,000 100,000 (2,200) (4,000) 17.000 Total Property, Plant & Equipment 204,800 Total Assets $243,600 $ 18,000 6,000 1,100 3,000 28,100 44,000 100,000 (1,600) (3,000) 20,000 159,400 $187.500 Accounts Receivable Supplies Prepaid Insurance Total Current Assets Equipment Building Accumulated Depreciation Equipment Accumulated Depreciation Building Land Liabilities Wages Payable Interest Payable $ 1,500 0. 500 500 105,000 50,000 155,500 1,500 105,000 Total Current Liabilities Note Payable Long-Term Note Payable for Equipment Total Liabilities 106,500 Owners' Equity Common Stock Paid-in Capital in Excess of Par Value .. Retained Earnings 6,000 54,000 28,100 88,100 Total Liabilities and Equity $243,600 6,000 54,000 21,000 81,000 $187.500 Total Owners' Equity Ac The following is additional information for the period June 1 to June 30, 2021: D $50,000 of Equipment was purchased by issuing a Note to the equipment vendor. No cash was paid to the vendor. D Land was sold for $5,000 cash. The land had a cost of $3,000; thus there was a $2,000 gain on the sale of the land. The $2,000 gain is included in Net Income. The Income Statement for June showed a Net Income of $15,100. An $8,000 dividend was declared and paid in June. e 30 30, 20 une 30
The following are the Balance Sheets for Larry's Landscaping as of May 31, 2021 (the end of last period) and June 30, 2021 (the end of this period): June 30, 2021 May 31, 2021 Assets Cash $ 25,000 9,500 1,600 2,700 38,800 94,000 100,000 (2,200) (4,000) 17.000 Total Property, Plant & Equipment 204,800 Total Assets $243,600 $ 18,000 6,000 1,100 3,000 28,100 44,000 100,000 (1,600) (3,000) 20,000 159,400 $187.500 Accounts Receivable Supplies Prepaid Insurance Total Current Assets Equipment Building Accumulated Depreciation Equipment Accumulated Depreciation Building Land Liabilities Wages Payable Interest Payable $ 1,500 0. 500 500 105,000 50,000 155,500 1,500 105,000 Total Current Liabilities Note Payable Long-Term Note Payable for Equipment Total Liabilities 106,500 Owners' Equity Common Stock Paid-in Capital in Excess of Par Value .. Retained Earnings 6,000 54,000 28,100 88,100 Total Liabilities and Equity $243,600 6,000 54,000 21,000 81,000 $187.500 Total Owners' Equity Ac The following is additional information for the period June 1 to June 30, 2021: D $50,000 of Equipment was purchased by issuing a Note to the equipment vendor. No cash was paid to the vendor. D Land was sold for $5,000 cash. The land had a cost of $3,000; thus there was a $2,000 gain on the sale of the land. The $2,000 gain is included in Net Income. The Income Statement for June showed a Net Income of $15,100. An $8,000 dividend was declared and paid in June. e 30 30, 20 une 30
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 24CE
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Larry's Landscaping
Statement of Cash Flows (Indirect Method)
for the Period June 1 to June 30, 2021
Cash Flows from Operating Activities
Net Income
Cash Provided by Operating Activities
Cash Flows from Investing Activities
Cash Provided by Investing Activities
Cash Flows from Financing Activities
Cash Used by Financing Activities
Increase in Cash from June 1 to June 30, 2021
Beginning Cash Balance June 1, 2021
Increase in Cash from June 1 to June 30, 2021
Ending Cash Balance June 30, 2021
NonCash Investing and Financing Activities
12-1
12-2
12-4
+)
Ready
OR
Wyse
Transcribed Image Text:The following are the Balance Sheets for Larry's Landscaping as of May 31, 2021 (the end of last
period) and June 30, 2021 (the end of this period):
June 30, 2021
May 31, 2021
Assets
Cash
Accounts Receivable
$ 25,000
9,500
1,600
2,700
38,800
94,000
100,000
(2,200)
(4,000)
17.000
Total Property, Plant & Equipment 204,800
Total Assets $243.600
$ 18,000
6,000
1,100
3,000
28,100
44,000
100,000
(1,600)
(3,000)
20,000
159,400
$187.500
Supplies
Prepaid Insurance
Total Current Assets
Equipment
Building
Accumulated Depreciation Equipment
Accumulated Depreciation Building
Land
Liabilities
Wages Payable
Interest Payable
%24
$4
1,500
Doc
500
500
105,000
50,000
155,500
Engl.
Total Current Liabilities
Note Payable Long-Term
Note Payable for Equipment
1,500
105,000
Total Liabilities
106,500
Owners' Equity
Common Stock
6,000
54,000
28,100
88,100
Total Liabilities and Equity $243.600
6,000
54,000
21,000
81,000
$187.500
Paid-in Capital in Excess of Par Value
Retained Earnings
Total Owners' Equity
Edr
The following is additional information for the period June 1 to June 30, 2021:
Ac
D $50,000 of Equipment was purchased by issuing a Note to the equipment vendor. No cash
was paid to the vendor
> Land was sold for $5,000 cash. The land had a cost of $3,000; thus there was a $2,000
gain on the sale of the land. The $2,000 gain is included in Net Income.
2 The Income Statement for June showed a Net Income of $15,100.
2 An $8,000 dividend was declared and paid in June.
Crea
e 30
Comm
30, 20
sune 30
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