The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2020 $ 105,700 69,500 66,800 4,700 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 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 Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 246,700 127,000 (28,500) $ 345,200 $ 28,000 6,300 3,700 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 38,000 33,000 71,000 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 226,000 48,200 $ 345,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 47,000 54,000 91,000 6,000 198,000 118,000 (10,500) $ 305,500 $ 34,500 15,600 4,400 54,500 63,000 117,500 163,000 25,000 $ 305,500 $ 693,000 414,000 279,000 70,000 61,600 147,400 2,300 149,700 44,190 $ 105,510 Additional Information a. A $30,000 note payable is retired at its $30,000 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income stateme f. All purchases and sales of inventory are on credit.
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2020 $ 105,700 69,500 66,800 4,700 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 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 Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 246,700 127,000 (28,500) $ 345,200 $ 28,000 6,300 3,700 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 38,000 33,000 71,000 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 226,000 48,200 $ 345,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 47,000 54,000 91,000 6,000 198,000 118,000 (10,500) $ 305,500 $ 34,500 15,600 4,400 54,500 63,000 117,500 163,000 25,000 $ 305,500 $ 693,000 414,000 279,000 70,000 61,600 147,400 2,300 149,700 44,190 $ 105,510 Additional Information a. A $30,000 note payable is retired at its $30,000 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income stateme f. All purchases and sales of inventory are on credit.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 10SPB
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