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The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets 2020 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets $ 79,700 84,500 76,800 5,700 246,700 137,000 (33,500) $ 350,200 $ 57,000 64,000 106,000 8,000 235,000 128,000 (15,500) $ 347,500 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities $38,000 7,300 4,700 50,000 32,600 82,600 $ 49,500 17,600 6,400 73,500 73,000 146,500 Equity Common stock, $5 par value Retained earnings Total liabilities and equity 246,000 21,600 $ 350,200 173,000 28,000 $ 347,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 743,000 424,000 319,000 80,000 71,600 167,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes 3,300 170,700 45,190 $ 125,510 Income taxes expense Net income Additional Information a. A $40,400 note payable is retired at its $40,400 carrying (book) value in exchange for b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income sta f. All purchases and sales of inventory are on credit.

The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets 2020 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets $ 79,700 84,500 76,800 5,700 246,700 137,000 (33,500) $ 350,200 $ 57,000 64,000 106,000 8,000 235,000 128,000 (15,500) $ 347,500 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities $38,000 7,300 4,700 50,000 32,600 82,600 $ 49,500 17,600 6,400 73,500 73,000 146,500 Equity Common stock, $5 par value Retained earnings Total liabilities and equity 246,000 21,600 $ 350,200 173,000 28,000 $ 347,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 743,000 424,000 319,000 80,000 71,600 167,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes 3,300 170,700 45,190 $ 125,510 Income taxes expense Net income Additional Information a. A $40,400 note payable is retired at its $40,400 carrying (book) value in exchange for b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income sta f. All purchases and sales of inventory are on credit.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter1: The Role Of Accounting In Business
Section: Chapter Questions
Problem 1.17E: Financial statements Each of the following items is shown in the financial statements of ExxonMobil...
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The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 2020 $ 79,700 84,500 76,800 5,700 246,700 137,000 (33,500) $ 350,200 $ 57,000 64,000 106,000 8,000 235,000 128,000 (15,500) $ 347,500 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities $ 38,000 7,300 4,700 50,000 32,600 82,600 $ 49,500 17,600 6,400 73,500 73,000 146,500 Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 173,000 28,000 $ 347,500 246,000 21,600 $ 350,200 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 743,000 424,000 319,000 80,000 71,600 167,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 3,300 170,700 45,190 $ 125,510 Net income Additional Information a. A $40,400 note payable is retired at its $40,400 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Transcribed Image Text:The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 2020 $ 79,700 84,500 76,800 5,700 246,700 137,000 (33,500) $ 350,200 $ 57,000 64,000 106,000 8,000 235,000 128,000 (15,500) $ 347,500 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities $ 38,000 7,300 4,700 50,000 32,600 82,600 $ 49,500 17,600 6,400 73,500 73,000 146,500 Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 173,000 28,000 $ 347,500 246,000 21,600 $ 350,200 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 743,000 424,000 319,000 80,000 71,600 167,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 3,300 170,700 45,190 $ 125,510 Net income Additional Information a. A $40,400 note payable is retired at its $40,400 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities $ Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash $ Cash balance at prior year-end Cash balance at current year-end $
Transcribed Image Text:Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities $ Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash $ Cash balance at prior year-end Cash balance at current year-end $
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