Spreadsheet from Trial Balance Heinz Company’s post closing trial balance as of December 31, 2018, and the adjusted trial balance as of December 31, 2019, are shown here:

A review of the accounting records reveals the following additional information:

1. a. Bomb payable with a face value, book value, and market value of $14,000 were retired on June 30, 2019.
2. b. Bonds payable with a face value of $8,000 were issued at 90.25 on August 1, 2019. They mature on August 1, 2024. The company uses the straight-line method to amortize the bond discount.
3. c. The company sold a building that had an original cost of $8,000 and a book value of $4,800. The company received $2,200 in cash for the building and recorded a loss of $2,600.
4. d. Equipment with a cost of $4,000 and a book value of $1,400 was exchanged for an acre of land valued at $2,700. No cash was exchanged.
5. e. Long-term investments in bonds being held to maturity with a cost of $ 1,000 were sold for $800.
6. f. Sixty-five shares of common stock were exchanged for a patent. The common stock was selling for $20 per share at the time of the exchange.

Required:

Prepare a spreadsheet to support a statement of cash flows for 2019.

Prepare a spreadsheet to support a cash flow statement of H Company for the year 2019.

Statement of cash flows: Cash flow 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: 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 spreadsheet to support the statement of cash flows.

Table (1)

A statement of cash flows of H Company for the year 2019:

Table (2)

Working notes:

(a) Calculate the net loss.

Table (2)

Note: The $31,850 ending retained earnings balance is derived by subtracting the $1,400 net loss and the $2,100 dividends from the $35,350 beginning retained earnings balance.

(e) Calculate the increase in accounts receivable.

Increase in Accounts Receivable=(Beginning yera's accounts receivable−Ending year's accounts receivable)=$5,900−$6,215=$315

(f) Calculate the increase in inventories.

Increase in inventories=(Beginning year's inventories−Ending year's inventories)=$15,300−$15,530=$230

(g) Calculate the decrease in prepaid items.

Decerase in prepaid items=(Beginning year's prepaid items −Ending year's prepaid items)=$1,400−$1,000=$400

(h) Calculate the increase in accounts payable.

Increase in Accounts Payable=(Beginning year's accounts payable−Ending year's accounts payable)=$8,900−$9,195=$295

(i) Calculate the decrease in interest payable.

Decrease in Interest Payable=(Beginning year's interest payable−Ending year's interest payable)=$630−$330=$330

(j) Calculate the increase in wages payable.

Increase in Wages Payable=(Beginning year's wages payable−Ending year's wages payable)=$2,500−$2,600=$100

(l) Proceeds from issuance of bonds payable