New equipment was purchased for 15750 cash Old equipment originally costing

New equipment was purchased for 15750 cash old

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New equipment was purchased for $15,750 cash. Old equipment originally costing $7,000 with accumulated amortization of $3,500 was sold for $2,450. Notes payable of $6,125 were paid. Bonds were sold at par for $5,250. A dividend of $6,650 was paid. The 2020 amortization expense was $3,500 for buildings and $7,000 for equipment. Instructions: Prepare a Statement of Cash Flows in good form. BUAD 193 Ann-Marie Cederholm, CPA, CGA, MA 4
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Problem 3 (24) Loofa Corporation Balance Sheet (Statement of Financial Position) As at December 31, 2020 2020 2019 Assets Current assets Cash $ 57,345 $ 21,845 Accounts receivable 43,690 49,150 Inventory 114,685 98,300 Total current assets 215,720 169,295 Equipment 76,460 65,535 Total assets $ 292,180 $ 234,830 Liabilities Current liabilities Accounts payable $ 46,420 $ 27,305 Taxes payable 5,465 10,920 Total liabilities 51,885 38,225 Shareholders' equity Common stock 180,220 163,835 Retained earnings 60,075 32,770 Total shareholders' equity 240,295 196,605 Total liabilities and shareholders' equity $ 292,180 $ 234,830 During 2020, the following occurred: Net income was $54,610. Amortization expense was $8,190. Equipment was purchased for cash, and no equipment was sold. Shares were sold for cash. Dividends were declared and paid. Instructions: Prepare a Statement of Cash Flows in good form. BUAD 193 Ann-Marie Cederholm, CPA, CGA, MA 5
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Problem 4 (25) Waif Corporation Balance Sheet (Statement of Financial Position) As at December 31, 2020 2020 2019 Assets Current assets Cash $ 54,500 $ 17,400 Accounts receivable 64,800 52,200 Inventory 142,200 149,300 Total current assets 261,500 218,900 Land 60,000 87,000 Plant and equipment 151,000 125,000 Total assets $ 472,500 $ 430,900 Liabilities Current liabilities Accounts payable $ 27,000 $ 37,000 Total current liabilities 27,000 37,000 Bonds payable 118,000 158,000 Total liabilities 145,000 195,000 Shareholders' equity Common stock 170,000 130,000 Retained earnings 157,500 105,900 Total shareholders' equity 327,500 235,900 Total liabilities and shareholders' equity $ 472,500 $ 430,900 During 2020, the following occurred: Net income was $91,000. Amortization expense was $22,000. Bonds were retired by issuing new common stock. No equipment was sold. Cash dividends were paid. Instructions: Prepare a Statement of Cash Flows in good form. BUAD 193 Ann-Marie Cederholm, CPA, CGA, MA 6
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  • Fall '16
  • Balance Sheet, Generally Accepted Accounting Principles, Ann-Marie Cederholm

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