Statement of cash flows-indirect methodThe comparative balance sheet of Livers Inc. for December 31, 2013 and20Y2, is shown as follows: Additional data obtained from an examination of the accounts in theledger for 2013 are as follows:A. The investments were sold for $175,000 cash.B. Equipment and land were acquired for cash.C. There were no disposals of equipment during the year.D. The common stock was issued for cash.E. There was a $500,000 credit to Retained Earnings for net income.F. There was a $90,000 debit to Retained Earnings for cashdividends declared.InstructionsPrepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Dec. 31,Dec. 31,20Υ320Υ2AssetsCash$ 155,000$ 150,000Accounts receivable (net)| 450,000400,000Inventories770,000750,000Investments100,000Land500,000Equipment1,400,000 1,200,000Accumulated depreciation-equipment|(600,000) (500,000)Total assets$2,675,000 $2,100,000Liabilities and Stockholders' EquityAccounts payable (merchandise creditors)$ 340,000$ 300,000Accrued expenses payable (operatingexpenses)| 45,00050,000Dividends payable30,00025,000Common stock. $4 par700,000600,000Paid-in capital: Excess of issue price over par|200,000175,000-common stockRetained earnings1,360,000 950,000Total liabilities and stockholders' equity$2,675,000 $2,100,000

Cash flow statement is a statement which shows all cash inflows and cash outflows related to…

Dec. 31, Dec. 31, 20Υ3 20Υ2 Assets Cash $ 155,000 $ 150,000 Accounts receivable (net) | 450,000 400,000 Inventories 770,000 750,000 Investments 100,000 Land 500,000 Equipment 1,400,000 1,200,000 Accumulated depreciation-equipment |(600,000) (500,000) Total assets $2,675,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 340,000 $ 300,000 Accrued expenses payable (operating expenses) | 45,000 50,000 Dividends payable 30,000 25,000 Common stock. $4 par 700,000 600,000 Paid-in capital: Excess of issue price over par |200,000 175,000 -common stock Retained earnings 1,360,000 950,000 Total liabilities and stockholders' equity $2,675,000 $2,100,000

Dec. 31, Dec. 31, 20Υ3 20Υ2 Assets Cash $ 155,000 $ 150,000 Accounts receivable (net) | 450,000 400,000 Inventories 770,000 750,000 Investments 100,000 Land 500,000 Equipment 1,400,000 1,200,000 Accumulated depreciation-equipment |(600,000) (500,000) Total assets $2,675,000 $2,100,000 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 340,000 $ 300,000 Accrued expenses payable (operating expenses) | 45,000 50,000 Dividends payable 30,000 25,000 Common stock. $4 par 700,000 600,000 Paid-in capital: Excess of issue price over par |200,000 175,000 -common stock Retained earnings 1,360,000 950,000 Total liabilities and stockholders' equity $2,675,000 $2,100,000

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

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 14RE: (Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a...

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(Appendix 11.1) Auburn Company purchased an asset on January 1, Year 1, for 150,000. The asset has a MACRS life of 7 years. The residual value of the asset is 35,000. Calculate the depreciation expense for Year 1 and Year 2 using MACRS.
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Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively
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Need a T graph : Sale of Building Building Asset: 555,047.06Accumulated Depreciation: 121,507.21Sale Cash $300,000 however you only recieve 295,446.97 because the lawyer took 4,553.03
P11.2 (LO 1, 2) (Deprec. for partial periods - SL, Act., SYD, and Declining - Balance) The cost of equip. purchased by Charleston, Inc. on June 1, 2020, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of it's service life. It's service life is estimated at 7 years, it's total working hours are estimated at 42,000, and it's total production is estimated at 525,000 units. During 2020, the machine was operated 6,000 hours and produced 55,000 units. During 2021, the machine was operated 5,500 hours and produced 48,000 units. Instructions: Compute deprec. expense on the machine for the year ending Dec. 31, 2020, and the year ending Dec. 31, 2021, using the following methods. a. Straight-line. b. Units-of-output. c. Working hours. d. Sum-of-the-years'-digits. e. Declining-balance (twice the straight-line rate).