The following three accounts appear in the general ledger of Herrick Corp. during 2020.
Equipment |
||||||||
---|---|---|---|---|---|---|---|---|
Date |
Debit |
Credit |
Balance |
|||||
Jan. 1 | Balance | 158,600 | ||||||
July 31 | Purchase of equipment | 69,800 | 228,400 | |||||
Sept. 2 | Cost of equipment constructed | 54,400 | 282,800 | |||||
Nov. 10 | Cost of equipment sold | 49,500 | 233,300 | |||||
Accumulated Depreciation—Equipment |
||||||||
Date |
Debit |
Credit |
Balance |
|||||
Jan. 1 | Balance | 69,800 | ||||||
Nov. 10 | Accumulated depreciation on equipment sold | 31,700 | 38,100 | |||||
Dec. 31 | Depreciation for year | 23,400 | 61,500 | |||||
Retained Earnings |
||||||||
Date |
Debit |
Credit |
Balance |
|||||
Jan. 1 | Balance | 105,200 | ||||||
Aug. 23 | Dividends (cash) | 17,100 | 88,100 | |||||
Dec. 31 | Net income | 66,000 | 154,100 |
From the postings in the accounts, indicate how the information is
reported on a statement of cash flows using the indirect method.
The loss on disposal of plant assets was $4,200. (Hint:
Cost of equipment constructed is reported in the investing
activities section as a decrease in cash of $54,400.)
(Show amounts that decrease cash flow with either a -
sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
HERRICK
CORP Partial Statement of Cash Flows choose the accounting period For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020 |
||
---|---|---|
select an opening name for section one
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
||
select an item
Loss on Disposal of Plant Assets Sale of Equipment Decrease in Accounts Payable Depreciation Expense Net Income Purchase of Equipment Construction of Equipment Payment of Cash Dividends Increase in Accounts Receivable |
$enter a dollar amount | |
Adjustments to reconcile net income to |
||
select a subsection name
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
||
select an item
Net Income Increase in Accounts Receivable Depreciation Expense Sale of Equipment Purchase of Equipment Construction of Equipment Loss on Disposal of Plant Assets Payment of Cash Dividends Decrease in Accounts Payable |
$enter a dollar amount | |
select an item
Increase in Accounts Receivable Sale of Equipment Purchase of Equipment Payment of Cash Dividends Construction of Equipment Decrease in Accounts Payable Depreciation Expense Net Income Loss on Disposal of Plant Assets |
enter a dollar amount | |
enter a subtotal of the adjustments | ||
select a closing name for section one
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash |
enter a total amount for section one | |
select an opening name for section two
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
||
select an item
Net Income Loss on Disposal of Plant Assets Depreciation Expense Sale of Equipment Decrease in Accounts Payable Purchase of Equipment Construction of Equipment Payment of Cash Dividends Increase in Accounts Receivable |
enter a dollar amount | |
select an item
Loss on Disposal of Plant Assets Depreciation Expense Construction of Equipment Net Income Decrease in Accounts Payable Increase in Accounts Receivable Sale of Equipment Purchase of Equipment Payment of Cash Dividends |
enter a dollar amount | |
select an item
Increase in Accounts Receivable Payment of Cash Dividends Decrease in Accounts Payable Depreciation Expense Loss on Disposal of Plant Assets Construction of Equipment Sale of Equipment Purchase of Equipment Net Income |
enter a dollar amount | |
select a closing name for section two
Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash |
enter a total amount for section two | |
select an opening name for section
three
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash |
||
select an item
Net Income Depreciation Expense Loss on Disposal of Plant Assets Sale of Equipment Purchase of Equipment Construction of Equipment Payment of Cash Dividends Increase in Accounts Receivable Decrease in Accounts Payable |
enter a dollar amount |
Click if you would like to Show Work for this question: |
Open Show Work |
Partial Statement of Cash Flows | |||
For the Year Ended December 31, 2020 | |||
Cash Flows from Operating Activities | |||
Net Income | 66000 | ||
Adjustments to reconcile net income to | |||
Net Cash Provided by Operating Activities | |||
Depreciation Expense | 23400 | ||
Loss on Disposal of Plant Assets | 4200 | ||
27600 | |||
Net Cash Provided by Operating Activities | 93600 | ||
Cash Flows from Investing Activities | |||
Sale of Plant Assets | 13600 | =(49500-31700-4200) | |
Construction of Equipment | -54400 | ||
Purchase of Equipment | -69800 | ||
Net Cash Used by Investing Activities | -110600 | ||
Cash Flows from Financing Activities | |||
Payment of Cash Dividends | -17100 |
The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debi...
The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debit Credit Balance Jan. 1 Balance 159,600 July 31 Purchase of equipment 71,200 230,800 Sept. 2 Cost of equipment constructed 52,500 283,300 Nov. 10 Cost of equipment sold 48,300 235,000 Accumulated Depreciation—Equipment Date Debit Credit Balance Jan. 1 Balance 70,500 Nov. 10 Accumulated depreciation on equipment sold 30,200 40,300 Dec. 31 Depreciation for year 23,800 64,100 Retained Earnings Date Debit Credit Balance Jan. 1...
Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020 2019 Cash $14,500 $10,700 Accounts receivable 20,800 23,800 Land 19,600 26,300 Buildings 70,100 70,100 Accumulated depreciation—buildings (15,000 ) (10,700 ) Total $110,000 $120,200 Accounts payable $11,800 $28,300 Common stock 75,000 73,400 Retained earnings 23,200 18,500 Total $110,000 $120,200 Additional information: 1. Net income was $22,800. Dividends declared and paid were $18,100. 2. No noncash investing and financing activities occurred during 2020. 3. The land...
Question 1 Gutierrez Company reported net income of $190,400 for 2020. Gutierrez also reported depreciation expense of $41,900 and a loss of $4,600 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $14,400 for the year, a $16,400 increase in accounts payable, and a $4,100 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow...
Exercise 17-04 Gutierrez Company reported net income of $197,600 for 2020. Gutierrez also reported depreciation expense of $43,800 and a loss of $5,200 on the disposal of plant assets. The comparative balance sheet shows a decrease in accounts receivable of $12,500 for the year, a $14,500 increase in accounts payable, and a $3,200 decrease in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2020. Use the indirect method. (Show amounts that decrease cash flow...
Telfer, Inc. reported net income of $2.6 million in 2020. Depreciation for the year was $157,700, accounts receivable decreased $375,000, and accounts payable decreased $267,200.Compute net cash provided by operating activities using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)Telfer, Inc.Statement of Cash Flows-Indirect Approach For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020 Cash at Beginning of PeriodCash at End of PeriodCash Flows...
Velo Company Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,800 $33,200 Accounts receivable 86,500 70,700 Inventory 170,200 187,000 Land 72,700 100,700 Equipment 260,700 200,600 Accumulated depreciation—equipment (65,700 ) (33,500 ) Total $597,200 $558,700 Liabilities and Stockholders’ Equity Accounts payable $35,400 $46,500 Bonds payable 149,800 203,300 Common stock ($1 par) 218,000 173,000 Retained earnings 194,000 135,900 Total $597,200 $558,700 Additional information: 1. Net income for 2020 was $103,600. 2. Cash dividends of $45,500 were declared and paid. 3. Bonds...
The following information is available for Whispering Winds Corp. for 2022. Cash used to purchase treasury stock$ 122,655 Cash dividends paid55,590 Cash paid for interest57,120 Net income1,183,965 Sales revenue2,045,100 Cash paid for taxes252,450 Cash received from customers1,443,555 Cash received from sale of building (at book value)503,880 Cash paid for operating expenses196,350 Beginning cash balance28,050 Cash paid for goods and services711,705 Cash received from issuing common stock905,250 Cash paid to redeem bonds at maturity510,000 Cash paid to purchase equipment288,660 Prepare a...
Wildhorse Company’s income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $836,000 Operating expenses (excluding depreciation) $626,000 Depreciation expense 60,000 Loss on sale of equipment 26,000 712,000 Income before income taxes 124,000 Income tax expense 40,000 Net income $84,000 Wildhorse’s balance sheet contained the following comparative data at December 31. 2017 2016 Accounts receivable $38,000 $53,000 Accounts payable 41,000 30,000 Income taxes payable 4,100 8,400 (Accounts payable pertains to operating expenses.) Prepare the...
The current sections of Ayayai Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Ayayai Corp.’s net income for 2022 was $457,200. Depreciation expense was $75,600. 2022 2021 Current assets Cash $111,600 $ 160,200 Accounts receivable 153,000 124,200 Inventory 140,400 111,600 Prepaid expenses 30,600 34,200 Total current assets $435,600 $430,200 Current liabilities Accrued expenses payable $ 10,800 $ 28,800 Accounts payable 158,400 129,600 Total current liabilities $169,200 $ 158,400 Prepare the net cash provided by operating activities...
The current sections of Ayayai Corp.’s balance sheets at December 31, 2021 and 2022, are presented here. Ayayai Corp.’s net income for 2022 was $457,200. Depreciation expense was $75,600. 2022 2021 Current assets Cash $111,600 $ 160,200 Accounts receivable 153,000 124,200 Inventory 140,400 111,600 Prepaid expenses 30,600 34,200 Total current assets $435,600 $430,200 Current liabilities Accrued expenses payable $ 10,800 $ 28,800 Accounts payable 158,400 129,600 Total current liabilities $169,200 $ 158,400 Prepare the net cash provided by operating activities...