Question

The Extra Surplus Company's Balance Sheet for December 31, 2017 and the income Statement for 2018 are shown below Extra Surplus company Balance Sheet December 31, 201 Assets Cash Accounts Receivable Inventory Property and Equipment, Net Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings Extra Surplus Company For the Year Ended December 11, 2018 Sales Cost of Goods Sold salaries and wage Expense Interest Expense Additional data Sales were 531200: 519.200 in cash wasceved from customers . Bought new land for cash, SA 000 • Sold other land for its book of $12.000 .Pad 52.400 principal on the long term nate payable and $2.400 in interest Sed new shares of stock for $24.000 cash - Cash dividends of $3.800 were declared and paid to stockholders • Paid $13.900 on accounts payable - No inventory purchases were made other expenses were incurred on account - wages were paid in cash - Other excenses were on account

Answer 1

Working Note Calculation of Ending balances 1) Accounts Receivable Beginning Balance $8,500 Add : Sales $31,200 Less: Collection ($19,200) Ending Balance $20,500 4) Cash Beginning Balance Add: Cash received Less: Land Purchased Add: Land Sold Less : Longterm debt paid Less : Interest paid Add : Shares issued Less : Dividend Paid Less: Paid to Suppliers Less : Salaries Ending Balance 2) Inventory Beginning Balance Add: Purchases Less: COGS Ending Balance $17,000 $19,200 ($24,000) $12,000 ($2,400) ($2,400) $24,000 ($3,800) ($13,900) ($7,200) $18,500 $20,400 $0 ($7,200) $13,200 3) Accounts Payable Beginning Balance Add : Other Exp Less : Cash paid Ending Balance $17,000 $1,200 ($13,900) $4,300

EXTRA SURPLUS COMPANY Balance Sheet at December 31, 2018 Particulars Amount Assets Cash $18,500 Accounts Receivable $20,500 Inventory $13,200 Property and Equipment Net ($34,000+ $24,000 - $12,000) | $46,000 Total Assets $98,200 Liabilities and Stockholders Equity Accounts Payable Notes Payable, Long Term ($8,500 - $2,400) Common Stock ($34,000 + $24,000) Retained Earnings ($20,400 + $13,200 - $3,800) Total Liabilities and Stockholders Equity $4,300 $6,100 $58,000 $29,800 $98,200

EXTRA SURPLUS COMPANY Statement of Cash Flow at December 31, 2018 Amount Particulars Cash Flow From Operating Activities Cash Collected from Customer Cash Paid to Supplier Cash Paid to Employees Cash paid for Interest on Loan Net cash used in Operating Activities (A) $19,200 ($13,900) ($7,200) ($2,400) ($4,300) Cash Flow From Investing Activities Purchase of land Sale of Land Net cash used in Investing Activities (B) ($24,000) ($12,000) ($12,000) Cash Flow From Financing Activities Issue of Common Stock Payment of Long term debt Payment of Dividend Net cash flow from Financing Activities (C) $24,000 ($2,400) ($3,800) $17,800 Net Increase in cash during the year (A+B+C) Add : Beginning Cash Balance Ending Cash Balance $1,500 $17,000 $18,500