ch 12 - An analysis of comparative balance sheets the...

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Unformatted text preview: An analysis of comparative balance sheets, the current year's income statement, and the general ledger I “me am ”mess there is eratln (b) Exchange of land For patent. nonmsh m 19 these four major (d) Payment (IF dividends. financing Icing activity, and (F) Conversion of bonds into Cornrnon stock. nonmsh (h) Issuance of capital stcc l-c. financing a 12-? m These three accounts appear in the general ledger ofTovar Corp. during 2010: "ones“ Equipment operating Date Debit Credit Balance E Jan. 1 Balance 210,080 finan‘jng July 31 Purchase of equipment 91,910 301,990 Sept.2 Cost of equipment consthcted 69,589 371,579 Nov.10 Cost of equipment sold 64,337 307,242 Accumulated De reciation — E ui ment Date Debit Credit Balance Jan. 1 Balance 93,223 From the postings in the accounts, indicated how the information is reported on the statement of cash flows, using the indirect method below. The loss on sale of equrpment ' ' ' ' ' iiib'AR CURFl ' ' ' ' ' ' ' ' ' ' cash of $69,589.) (If the amount reduces cash flow put TUVAR CORP Partial Statement of Cash Flows For the Year Ended December 31, 2010 Cash flows from operating activities Net income $94,536 Adjustments to reconcile net income to net $ 94536 cash provided by operating activities Depreciation expense $36,764 Loss on sale of equipment 10,504 47,268 TAGU CHI COM PAN‘I" AE 1 2 ‘3 Comparative Balance Sheet i268 December 31 — Assets 2010 zone 500' 1304 Cash $98,550 $29,700 nan-aunt..- 'nlnial-aliln 11ll Trn 1nr| can MATSUI COMPANY Statement of Cash Flows 315' For the Year Ended December 31,, 2010 P-‘nh “mm. Fun— .“uw-u-hm -..+:..:+:...- MATSUI COMPANY Statement of Cash Flows For the Year Ended December 31 2010 —l— Cash flows from operating activities Net income $ 139050 Adjustments to reconcile net income to net cash provided by operating activities Depreciation expense $45900 Decrease in inventory 25650 increase in arrnllntr: rpmivahln i191 Elli The following information is taken from the 2010 general ledger of Luzinski Company. In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows Rent Rent expense $58,120 Prepaid rent, January 1 8,573 "a: Prepaid rent, December 31 13,077 Reported in operating activities - Cash payments for rent $ 62624 Salaries Salaries expense $78,462 Salaries payable, January 1 14,530 Salaries payable, December 31 11,624 Reported in operating activities - Cash payments for salaries $ 81368 Sales Revenue from sales $247,010 Accounts receivable, January 1 23,248 Accounts receivable, December 31 10,171 Reported in operating activrties — Cash receipts from customers $ 260087 Cash payments For rentals Rent expense $58,120 Add: Increase in prepaid rent 4,504 Cash payments for rent $626524 Cash payments For salaries Salaries expense $913,462 Add: Decrease in salaries payable 2,906 Cash payments for salaries $815368 Cash receipts From customers Revenue from sales $24?,O 10 Add: Decrease in accounts receivable 13,0??? Cash receipts from customers $260EOB7 ...
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