(Select "cl" for all the closing entries.) Cash 2016 2016 End. Bal End. Bal 2017 Retained Earnings 2016 End. Ba End. Bal 2017 Bonds Payable 2016 End. Bal End. Bal Lease Revenue Interest Expense 2016 2016 End. Bal 2017 End. Bal 2017 End. Bal End. Bal
Prepare the income statement, balance sheet, and statement of cash flows for 2016 and 2017. (Amounts to be deducted and net loss amount should be indicated with minus sign) Income Statements For the Year Ended December 31 For the Year Ended December 3 Total assets Stockholders equity Total stockholder's equity Total liab and stockholders equity For the Year Ended December 31 Cash fows from operating acivibes Net cash flow from operating act Cash fows from investing activities Cash fows from financing activities Net change in cash Ending cash balance
Homework Answers
| Working Notes | |||
| Journal Entries | |||
| Cash A/c Dr | 202000 | ||
| To Bond payable /Common Stock | 202000 | ||
| (Since bond issued) | |||
| 7% bond | |||
| interest payable | 14140 | ||
| TO BANK /CASH | 14140 | ||
| LAND | 202000 | ||
| TO BANK /CASH | 202000 | ||
| CASH/ BANK | 46000 | ||
| TO INCOME | 46000 | ||
| Answer Begin from here | |||
| Doyle Company | |||
| Income Statements | |||
| For the year ended Dec'16 & Dec'17 | |||
| 2016 | 2017 | ||
| Income from Land | 46000 | 46000 | |
| Less: | Interest on bond | 14140 | 14140 |
| Net profit | 31860 | 31860 | |
| Doyle Company | |||
| Balance sheet | |||
| For the year ended Dec'16 & Dec'17 | |||
| 2016 | 2017 | ||
| Assets | |||
| Land | 202000 | 202000 | |
| Cash/Bank | 31860 | 63720 | |
| Total Assets | 233860 | 265720 | |
| Liabilities | |||
| StockHolder Equity | |||
| Common Stock | 202000 | 202000 | |
| Reverse & Surplus | 31860 | 63720 | |
| Total Liab nad stockholders equity | 233860 | 265720 | |
| Doyle Company | |||
| Statement of Cash Flow | |||
| For the year ended 31 Dec | |||
| 2016 | 2017 | ||
| A | Cash Flow from Operating Acitivies | 0 | 0 |
| Cash Flow from investment Activities | |||
| Purchase of Land | -202000 | 0 | |
| Revenue for land as lease | 46000 | 46000 | |
| B | Cash Flow from investment Activities | -156000 | 46000 |
| Cash Flowfrom Financing Activies | |||
| Bond Issued | 202000 | 0 | |
| Interest paid on Bond | -14140 | -14140 | |
| C | Cash Flowfrom Financing Activies | 187860 | -14140 |
| D=A+B+C | Total Cash Flow from Operating Activities | 31860 | 31860 |
| F | Opening Cash Balance | 0 | 31860 |
| G=D+F | Ending Cash Balance | 31860 | 63720 |
Assumption
Buy of land and giving it under lease is not considered it ordinary course of business . If land is considered as ordinary course of business than same will be appeared as Inventory in Balance sheet instead of Asset.
And in cash flow statement same will be cash flow from operating activities instead of cash flow from investment activities .
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Add (deduct) items not affecting cash:
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Increase in accounts receivable
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