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College Accounting, Chapters 1-27 22nd Edition

College Accounting, Chapters 1-27 (22nd Edition)

Book Edition22nd Edition
Author(s)Heintz, Parry
Chapter 23, End of Chapter, Self-Study Demonstration Problem, Exercise 2
Page 915


Financial statements and additional information for Megaproducts, Inc., are provided below and on page 916.

Additional information:



4. Declared and paid cash dividends of $128,000.

5. Issued 2,000 shares of $10 par common stock for $15 per share.

6. Retired notes payable for $17,200 and acquired additional office equipment by issuing a note payable for $12,000.


Reconcile the cash and cash equivalents at the bottom of the statement of cash flows.


The company has a total of $197,786 cash and cash equivalents as presented in its statement of cash flows. This is comprised of two current assets, namely, cash and government notes amounting to $171,786 and $26,000, respectively.

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Page 915
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