Spreadsheet The following 2019 information is available for Payne Company:
Partial additional information: The net income for 2019 totaled $1,600. During 2019, the company sold, for $390, equipment that cost $390 and had a book value of $300. The company sold land for $200, resulting in a loss of $40. The remaining change in the Land account resulted from the purchase of land through the issuance of common stock.
Required:
Making whatever additional assumptions that are necessary, prepare a spreadsheet to support the 2019 statement of cash flows for Payne.
Prepare a statement of cash flows using spreadsheet method of P Company for the year 2019.
Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities.
Worksheet:Â A worksheet is a spreadsheet used while preparing a financial statement. It is a type of form having multiple columns and it is used in the adjustment process. The use of a worksheet is optional for any organization. A worksheet can neither be considered as a journal nor a part of the general ledger.
Prepare a statement of cash flows using spreadsheet method.
Table (1)
Table (1)
Working notes:
a. Net income for the year is $1,600
b. Calculate the gain on sale of equipment.
c. Calculate the loss on sale of land.
   d-1. Calculate the issuance of common stock for land.
 d-2. Calculate the acquisition of land by issuance of common stock.
e. Calculate the decrease in accounts receivable.
f. Calculate the increase in inventory.
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