The following information was taken from the accounting records of ATLANTA Company for the year ended December 31, 2021:• Net income during the year, P2.250,000• Proceeds from the issuance of preference shares, P4,000,000• Dividends paid on preference shares, P400,000• Bonds payable converted to ordinary shares, P2,000,000• Payment for purchase of machinery, P500,000• Proceeds from sale of plant building. P1,200,000• Retirement of bonds payable at face value, P2,500,000• 2% bonus issue on ordinary shares, P300,000• Purchase of ordinary treasury shares, P120,000• Payment for the purchase of debt securities at amortized cost, P450,000• Gain on sale of plant building, P200,000• Depreciation expense, P188,000• Doubtful accounts expense, P87,000• Increase in accounts receivable, P325,000• Decrease in merchandise inventory, P129,000• Increase in investments in equity securities at FVTPL, P440,000• Increase in accounts payable, P90,000• Decrease in accrued expenses, P225,000• Increase in income tax payable, P117,000Assume that the cash and cash equivalents at January 1, 2021 amounted to P290,000. How much is the cash and cashequivalents at December 31, 2021?

Cash flow statement is prepared in direct method

Answered: The following information was taken…

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

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 9P

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Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1,000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50,000 to retire bonds with a face value (and book value) of 50,000. e. On July 2, 2019, Farrell purchased equipment for 63,000 cash. f. On December 31, 2019. land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows.
Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Instructions 1. Journalize the entries to record the preceding transactions. 2. Prepare the investment-related asset and stockholders equity balance sheet presentation for Glacier Products Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is 700,000.
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Assume that as of January 1, 20Y8, Sylvester Con- suiting has total assets of $500,000 and total assets of $150,000. As of December 31, 20Y8, Sylvester has total liabilities of $200,000 and total stockholders’ equity of $400,000. (a) What was Sylvester’s stockholders’ equity as of January 1, 20Y8? (b) Assume that Sylvester did not pay any dividends during 20Y8. What was the amount of net income for 20Y8?
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