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Additional Information 1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sol 2. Equipment purchases are for cash. 3. Accumulated depreciation is affected by depreciation expense and the sale 4. The balance of retained earnings is affected by dividend declarations and nE 5. All sales are made on credit.

Additional Information 1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sol 2. Equipment purchases are for cash. 3. Accumulated depreciation is affected by depreciation expense and the sale 4. The balance of retained earnings is affected by dividend declarations and nE 5. All sales are made on credit.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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prepeare cash flow statememt 

Additional Information 1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash. 2. Equipment purchases are for cash. 3. Accumulated depreciation is affected by depreciation expense and the sale of equipment. 4. The balance of retained earnings is affected by dividend declarations and net income. 5. All sales are made on credit. 6. All inventory purchases are on credit. 7. Account payable balances result from inventory purchases. 8. Prepaid expenses relate to "other operating expenses"
Transcribed Image Text:Additional Information 1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash. 2. Equipment purchases are for cash. 3. Accumulated depreciation is affected by depreciation expense and the sale of equipment. 4. The balance of retained earnings is affected by dividend declarations and net income. 5. All sales are made on credit. 6. All inventory purchases are on credit. 7. Account payable balances result from inventory purchases. 8. Prepaid expenses relate to "other operating expenses"
Lima corporation Balance Sheet 2016 2015 December 2016 and 2015 Assets Cash 43,050 23,925 Accounts Receivable 34,125 Inventory Prepaid Expenses Total Current Assets 39,825 156,000 146,475 3,600 1,650 236,775 211,875 135,825 146,700 (61,950) (47,550) 310,650 311,025 Equipment Accumulated Depreciation Total Assets Liabilities Accounts Payable Income Taxes Payable Dividends Payable 28,800 5,100 33,750 4,425 4,500 42,675 37,500 80,175 Total Short Term Liabilities 33,900 Bonds Payable Total Liabilities 33,900 Equity Common Stock, $10 par value | 168,750 | 168,750 Retained Earnings Total Liabilities and Equity 108,000 62,100 310,650 311,025 Lima Corporation Income Statement December 31, 2016 Sales 446,100 Cost of Goods Sold Other Operating Expenses Depreciation Expense Other Gains (Losses) Loss on sale of equipment 222,300 120,300 25,500 (368,100) 3,300 Loss on retirement of bonds 825 (4,125) 73,875 (13,725) 60,150 Income before taxes Income tax Net Income
Transcribed Image Text:Lima corporation Balance Sheet 2016 2015 December 2016 and 2015 Assets Cash 43,050 23,925 Accounts Receivable 34,125 Inventory Prepaid Expenses Total Current Assets 39,825 156,000 146,475 3,600 1,650 236,775 211,875 135,825 146,700 (61,950) (47,550) 310,650 311,025 Equipment Accumulated Depreciation Total Assets Liabilities Accounts Payable Income Taxes Payable Dividends Payable 28,800 5,100 33,750 4,425 4,500 42,675 37,500 80,175 Total Short Term Liabilities 33,900 Bonds Payable Total Liabilities 33,900 Equity Common Stock, $10 par value | 168,750 | 168,750 Retained Earnings Total Liabilities and Equity 108,000 62,100 310,650 311,025 Lima Corporation Income Statement December 31, 2016 Sales 446,100 Cost of Goods Sold Other Operating Expenses Depreciation Expense Other Gains (Losses) Loss on sale of equipment 222,300 120,300 25,500 (368,100) 3,300 Loss on retirement of bonds 825 (4,125) 73,875 (13,725) 60,150 Income before taxes Income tax Net Income
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