Comprehensive Angel Company has prepared its financial statements for the year ended December 31, 2019, and for the 3 months ended March 31, 2020. You have been asked to prepare a statement of cash flows for the 3 months ended March 31, 2020. The company’s balance sheet data at December 31, 2019, and March 31, 2020, and its income statement data for the 3 months ended March 31, 2020, follow. You are satisfied as to the correctness of the amounts presented. Your discussion with the company’s controller and a review of the financial records have revealed the following information: a. On January 7, 2020, the company sold marketable securities for cash. These securities had cost $9,200, and had a fair value of $8,600 at December 31. 2019. The remaining marketable securities were adjusted to their $7,400 fair value on March 31, 2020, by adjustment of the related allowance account. The dividend and interest revenue on these marketable securities is not material. b. The company’s preferred stock was converted into common stock at a rate of one share of preferred for two shares of common. The preferred stock and common stock have par values of $2 and $1, respectively. c. On January 16, 2020, 3 acres of land were condemned. An award of $29,860 in cash was received on March 24, 2020. Purchase of additional land as a replacement is not contemplated by the company. d. On March 25, 2020, the company purchased equipment for cash. e. On March 26, 2020, bonds payable were issued by the company at par for cash. f. The equity investment representing a 30% ownership interest in Titan Company included an amount of $9,600 attributable to an increase in the recorded value of depreciable assets at December 31, 2019. This increase is being depreciated at a quarterly rate of $480. Required: 1. Prepare a spreadsheet to support the statement of cash flows for Angel for the 3 months ended March 31, 2020. 2. Prepare the statement of cash flows.

BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 21, Problem 12P
Textbook Problem

Comprehensive Angel Company has prepared its financial statements for the year ended December 31, 2019, and for the 3 months ended March 31, 2020. You have been asked to prepare a statement of cash flows for the 3 months ended March 31, 2020. The company’s balance sheet data at December 31, 2019, and March 31, 2020, and its income statement data for the 3 months ended March 31, 2020, follow. You are satisfied as to the correctness of the amounts presented.

Chapter 21, Problem 12P, Comprehensive Angel Company has prepared its financial statements for the year ended December 31,

Your discussion with the company’s controller and a review of the financial records have revealed the following information:

  1. a. On January 7, 2020, the company sold marketable securities for cash. These securities had cost $9,200, and had a fair value of $8,600 at December 31. 2019. The remaining marketable securities were adjusted to their $7,400 fair value on March 31, 2020, by adjustment of the related allowance account. The dividend and interest revenue on these marketable securities is not material.
  2. b. The company’s preferred stock was converted into common stock at a rate of one share of preferred for two shares of common. The preferred stock and common stock have par values of $2 and $1, respectively.
  3. c. On January 16, 2020, 3 acres of land were condemned. An award of $29,860 in cash was received on March 24, 2020. Purchase of additional land as a replacement is not contemplated by the company.
  4. d. On March 25, 2020, the company purchased equipment for cash.
  5. e. On March 26, 2020, bonds payable were issued by the company at par for cash.
  6. f. The equity investment representing a 30% ownership interest in Titan Company included an amount of $9,600 attributable to an increase in the recorded value of depreciable assets at December 31, 2019. This increase is being depreciated at a quarterly rate of $480.

Required:

  1. 1. Prepare a spreadsheet to support the statement of cash flows for Angel for the 3 months ended March 31, 2020.
  2. 2. Prepare the statement of cash flows.

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Chapter 21 Solutions

Intermediate Accounting: Reporting And Analysis
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