On January 1, 2021, Red Flash Photography had the following balances: Cash, $26,000; Supplies, $9,400; Land, $74,000; Deferred Revenue, $6,400; Common Stock $64,000; and Retained Earnings, $39,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $34,000. 2. May 3. August 4. October 5. November 17 Purchase supplies on account, $36,000. 6. December 30 Pay dividends, $3,400. 20 Provide services to customers for cash, $49,000, and on account, $44,000. 31 Pay salaries to employees for work in 2021, $37,000. 1 Purchase rental space for one year, $26,000. The following information is available on December 31, 2021: 1. Employees are owed an additional $5,400 in salaries. E. Three months of the rental space has expired. E. Supplies of $6,400 remain on hand. . All of the services associated with the beginning deferred revenue have been performed.

On January 1, 2021, Red Flash Photography had the following balances: Cash, $26,000; Supplies, $9,400; Land, $74,000; Deferred Revenue, $6,400; Common Stock $64,000; and Retained Earnings, $39,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $34,000. 2. May 3. August 4. October 5. November 17 Purchase supplies on account, $36,000. 6. December 30 Pay dividends, $3,400. 20 Provide services to customers for cash, $49,000, and on account, $44,000. 31 Pay salaries to employees for work in 2021, $37,000. 1 Purchase rental space for one year, $26,000. The following information is available on December 31, 2021: 1. Employees are owed an additional $5,400 in salaries. E. Three months of the rental space has expired. E. Supplies of $6,400 remain on hand. . All of the services associated with the beginning deferred revenue have been performed.

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

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...

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Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and 2018, and the statement of income and retained earnings for the year ended December 31, 2019: Additional information: a. On January 2, 2019, Farrell sold equipment costing 45,000, with a book value of 24,000, for 19,000 cash. b. On April 2, 2019, Farrell issued 1, 000 shares of common stock for 23,000 cash. c. On May 14, 2019, Farrell sold all of its treasury stock for 25,000 cash. d. On June 1, 2019, Farrell paid 50, 000 to retire bonds with a face value (and book value) of 50, 000. e. On July 2, 2019, Farrell purchased equipment for 63, 000 cash. f. On December 31, 2019, land with a fair market value of 150,000 was purchased through the issuance of a long-term note in the amount of 150,000. The note bears interest at the rate of 15% and is due on December 31, 2021. g. Deferred taxes payable represent temporary differences relating to the use of accelerated depreciation methods for income tax reporting and the straight-line method for financial statement reporting. Required: 1. Prepare a spreadsheet to support a statement of cash flows for Farrell for the year ended December 31, 2019, based on the preceding information. 2. Prepare the statement of cash flows. (Appendix 21.1) Spreadsheet and Statement Refer to the information for Farrell Corporation in P21-13. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support a 2019 statement of cash flows. (Hint: Combine the income statement and December 31, 2019, balance sheet items for the adjusted trial balance. Use a retained earnings balance of 291,000 in this adjusted trial balance.) 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Smallville Company was organized on January 1, 2020. It is authorized to issue 109000 shares of $110 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts. Cash-$58000, Merchandise Inventory- $75200, Prepaid Insurance-$4800, 10% Notes Payable-$25400, Equipment-$138000, Accumulated Depreciation: Equipment-$3800, Common Stock-$131000, Paid in capital in excess of par value: Common Stock-$24000, and Retained Earnings-$91800. The following transactions took place in Smallville Company during April of the current year (2020). April 1 - Issued 2500 new shares of common stock for $343000 April 3 - Purchased merchandise of $7600 on account from Prescott Co., terms FOB destination, 2/10, n/30. The appropriate party paid the freight charge of $250. April 4 - Sold merchandise for cash, $89100. The cost of the merchandise sold was $47000. April 5 - Purchased merchandise on account from Stafford Co., $23000,…
Smallville Company was organized on January 1, 2020. It is authorized to issue 114000 shares of $120 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts. Cash-$58000, Merchandise Inventory- $75500, Prepaid Insurance-$4900, 10% Notes Payable-$26000, Equipment-$138000, Accumulated Depreciation: Equipment-$3100, Common Stock-$124000, Paid in capital in excess of par value: Common Stock-$23000, and Retained Earnings-$100300. The following transactions took place in Smallville Company during April of the current year (2020).April 1 - Issued $2400 new shares of common stock for $335000 April 3 - Purchased merchandise of $7500 on account from Prescott Co., terms FOB destination, 2/10, n/30. The appropriate party paid the freight charge of $260.April 4 - Sold merchandise for cash, $85700. The cost of the merchandise sold was $48000.April 5 - Purchased merchandise on account from Stafford Co., $21000,…
Smallville Company was organized on January 1, 2020. It is authorized to issue 102000 shares of $120 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts. Cash-$58000, Merchandise Inventory- $75800, Prepaid Insurance-$4900, 10% Notes Payable-$25200, Equipment-$143000, Accumulated Depreciation: Equipment-$3700, Common Stock-$124000, Paid in capital in excess of par value: Common Stock-$24000, and Retained Earnings-$104800. The following transactions took place in Smallville Company during April of the current year (2020). April 1 - Issued $2500 new shares of common stock for $346000 April 3 - Purchased merchandise of $7500 on account from Prescott Co., terms FOB destination, 2/10, n/30. The appropriate party paid the freight charge of $300. April 4 - Sold merchandise for cash, $83600. The cost of the merchandise sold was $48000. April 5 - Purchased merchandise on account from Stafford Co., $23000,…
Smallville Company was organized on January 1, 2020. It is authorized to issue 104000 shares of $110 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts.Cash-$57000, Merchandise Inventory- $75600, Prepaid Insurance-$5100, 10% Notes Payable-$25000, Equipment-$135000, Accumulated Depreciation: Equipment-$3900, Common Stock-$124000, Paid in capital in excess of par value: Common Stock-$22000, and Retained Earnings-$97800.The following transactions took place in Smallville Company during April of the current year (2020).April 1 - Issued $2600 new shares of common stock for $339000April 3 - Purchased merchandise of $8000 on account from Prescott Co., terms FOB destination, 2/10, n/30. The appropriate party paid the freight charge of $280.April 4 - Sold merchandise for cash, $81500. The cost of the merchandise sold was $50000.April 5 - Purchased merchandise on account from Stafford Co., $23000, terms…
Smallville Company was organized on January 1, 2020. It is authorized to issue 109000 shares of $110 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts. Cash-$60000, Merchandise Inventory- $75500, Prepaid Insurance-$5000, 10% Notes Payable-$25600, Equipment-$137000, Accumulated Depreciation: Equipment-$3500, Common Stock-$130000, Paid in capital in excess of par value: Common Stock-$25000, and Retained Earnings-$93400.The following transactions took place in Smallville Company during April of the current year (2020).April 1 - Issued 2400 new shares of common stock for $336000April 3 - Purchased merchandise of $7500 on account from Prescott Co., terms FOB destination, 3/10, n/30. The appropriate party paid the freight charge of $290.April 4 - Sold merchandise for cash, $80400. The cost of the merchandise sold was $51000.April 5 - Purchased merchandise on account from Stafford Co., $23000,…
Smallville Company was organized on January 1, 2020. It is authorized to issue 109000 shares of $110 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts.Cash-$60000, Merchandise Inventory- $75500, Prepaid Insurance-$5000, 10% Notes Payable-$25600, Equipment-$137000, Accumulated Depreciation: Equipment-$3500, Common Stock-$130000, Paid in capital in excess of par value: Common Stock-$25000, and Retained Earnings-$93400.The following transactions took place in Smallville Company during April of the current year (2020).April 1 - Issued 2400 new shares of common stock for $336000April 3 - Purchased merchandise of $7500 on account from Prescott Co., terms FOB destination, 3/10, n/30. The appropriate party paid the freight charge of $290.April 4 - Sold merchandise for cash, $80400. The cost of the merchandise sold was $51000.April 5 - Purchased merchandise on account from Stafford Co., $23000, terms…
Washinton Company has the following stockerholders' equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 8,000) $480,000 Retained Earnings 294,000 Instructions: a. Prepare entries in journal form to record the following transactions, which took place during 2021. 1. 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) A $20 per share cash dividend was declared. The dividend declared in (2) above was paid. The treasury shares purchased in (1) above were resold at $102 per share. 500 shares of outstanding stock were purchased at $105 per share. 350 of the shares purchased in (5) above were resold at $96 per share. b. Prepare the stockholders' equity section of Washington COmpany's balance sheet after giving effect to these transactions, assuming that the net income for 2021 was $94,000. State law requires restriction of retained earnings for the amount of treasury stock.
After formation on Aug. 1, 2018, the ledger accounts of the Ilano Corporation have the following balances: Accrued Expenses = P50,000 Accounts Payable = P400,000 Accounts Receivable = P220,000 Allowance for Uncollectible Accounts = P20,000 Building = P1,000,000 Cash = P160,000 Ordinary Shares, P250 par, 50,000 shares authorized = P1,513,000 Subscribed Ordinary Shares = P80,000 Furniture and Fixtures = P250,000 Merchandise Inventory = P1,000,000 Notes Payable-Short Term = P250,000 Organization Expense = P30,000 Share Premium-Ordinary = P60,000 Share Premium-Preference = P30,000 10% Noncumulative and Nonparticipating Preference Shares, 30,000 P500 par, 5,000 shares authorized = P250,000 10% Preference Shares Subscribed, P500 par = P100,000 Subscriptions Receivable-Ordinary = P41,000 Subscriptions Receivable-Preference = P52,000 Required: 1. Determine the following: a. How many ordinary shares are outstanding? b. How many ordinary shares…
After formation on Aug. 1, 2018, the ledger accounts of the Ilano Corporation have the following balances: Accrued Expenses = P50,000 Accounts Payable = P400,000 Accounts Receivable = P220,000 Allowance for Uncollectible Accounts = P20,000 Building = P1,000,000 Cash = P160,000 Ordinary Shares, P250 par, 50,000 shares authorized = P1,513,000 Subscribed Ordinary Shares = P80,000 Furniture and Fixtures = P250,000 Merchandise Inventory = P1,000,000 Notes Payable-Short Term = P250,000 Organization Expense = P30,000 Share Premium-Ordinary = P60,000 Share Premium-Preference = P30,000 10% Noncumulative and Nonparticipating Preference Shares, 30,000 P500 par, 5,000 shares authorized = P250,000 10% Preference Shares Subscribed, P500 par = P100,000 Subscriptions Receivable-Ordinary = P41,000 Subscriptions Receivable-Preference = P52,000 Required: 1. Determine the following: a. How many ordinary shares are outstanding? b. How many ordinary shares…
Sarasota Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par value, authorized 8,800 shares) $523,200 Retained Earnings 309,100 (a) Prepare entries in journal form to record the following transactions, which took place during 2021. (1) 280 shares of outstanding stock were purchased at $97 per share. (These are to be accounted for using the cost method.) (2) A $21 per share cash dividend was declared. (3) The dividend declared in (2) above was paid. (4) The treasury shares purchased in (1) above were resold at $103 per share. (5) 480 shares of outstanding stock were purchased at $106 per share. (6) 320 of the shares purchased in (5) above were resold at $96 per share.
After formation on Aug. 1, 2018, the ledger accounts of the Ilano Corporation have the following balances: Accrued Expenses = P50,000 Accounts Payable = P400,000 Accounts Receivable = P220,000 Allowance for Uncollectible Accounts = P20,000 Building = P1,000,000 Cash = P160,000 Ordinary Shares, P250 par, 50,000 shares authorized = P1,513,000 Subscribed Ordinary Shares = P80,000 Furniture and Fixtures = P250,000 Merchandise Inventory = P1,000,000 Notes Payable-Short Term = P250,000 Organization Expense = P30,000 Share Premium-Ordinary = P60,000 Share Premium-Preference = P30,000 10% Noncumulative and Nonparticipating Preference Shares, 30,000 P500 par, 5,000 shares authorized = P250,000 10% Preference Shares Subscribed, P500 par = P100,000 Subscriptions Receivable-Ordinary = P41,000 Subscriptions Receivable-Preference = P52,000 Required: 1. Determine the following: d. How many preference shares are subscribed? e. At what average price has…