Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Whitman Co. at December 31,...

Question

Statement of Cash Flows—Indirect MethodThe comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:									Dec. 31, 20Y2									Dec. 31, 20Y1														Assets																									Cash			$ 552,690									$ 594,240										Accounts receivable (net)			502,950									458,730										Inventories			762,710									701,920										Prepaid expenses			17,690									21,000										Land			190,130									287,400										Buildings			878,780									541,640										Accumulated depreciation-buildings			(248,710)									(232,130)										Equipment			309,510									273,580										Accumulated depreciation-equipment			(85,110)									(95,620)										Total assets			$2,880,640									$2,550,760														Liabilities and Stockholders' Equity										Accounts payable (merchandise creditors)			$ 547,320									$ 577,560							Bonds payable			161,320									0							Common stock, $20 par			190,000									70,000							Paid-in capital: Excess of issue price over par-common stock			456,000									336,000							Retained earnings			1,526,000									1,567,200							Total liabilities and stockholders’ equity			$2,880,640									$2,550,760			The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows:										ACCOUNT					Land														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance									287,400										Apr. 20			Realized $90,500 cash from sale						97,270			190,130																ACCOUNT					Buildings														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance									541,640										Apr. 20			Acquired for cash			337,140						878,780																ACCOUNT					Accumulated Depreciation-Buildings														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance												232,130							Dec. 31			Depreciation for year						16,580						248,710													ACCOUNT					Equipment														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance									273,580										Jan. 26			Discarded, no salvage						30,100			243,480										Aug. 11			Purchased for cash			66,030						309,510																ACCOUNT					Accumulated Depreciation-Equipment														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance												95,620							Jan. 26			Equipment discarded			30,100									65,520							Dec. 31			Depreciation for year						19,590						85,110													ACCOUNT					Bonds Payable														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						May 1			Issued 20-year bonds						161,320						161,320													ACCOUNT					Common Stock, $20 par														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance												70,000							Dec. 7			Issued 6,000 shares of commonstock for $40 per share						120,000						190,000													ACCOUNT					Paid-in Capital in Excess of Par-Common Stock														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance												336,000							Dec. 7			Issued 6,000 shares of commonstock for $40 per share						120,000						456,000													ACCOUNT					Retained Earnings														ACCOUNT NO.																										Balance														Date										Item										Debit										Credit										Debit										Credit										20Y2																						Jan. 1			Balance												1,567,200							Dec. 31			Net loss			19,840									1,547,360							Dec. 31			Cash dividends			21,360									1,526,000

ACCOUNT Land	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			287,400
Apr. 20	Realized $90,500 cash from sale		97,270	190,130

ACCOUNT Buildings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			541,640
Apr. 20	Acquired for cash	337,140		878,780

ACCOUNT Accumulated Depreciation-Buildings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				232,130
Dec. 31	Depreciation for year		16,580		248,710

ACCOUNT Bonds Payable	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 20-year bonds		161,320		161,320

ACCOUNT Common Stock, $20 par	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				70,000
Dec. 7	Issued 6,000 shares of common stock for $40 per share		120,000		190,000

Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 552,690 $ 594,240 Accounts...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment

	Dec. 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$ 552,690		$ 594,240
Accounts receivable (net)	502,950		458,730
Inventories	762,710		701,920
Prepaid expenses	17,690		21,000
Land	190,130		287,400
Buildings	878,780		541,640
Accumulated depreciation-buildings	(248,710)		(232,130)
Equipment	309,510		273,580
Accumulated depreciation-equipment	(85,110)		(95,620)
Total assets	$2,880,640		$2,550,760
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 547,320		$ 577,560
Bonds payable	161,320		0
Common stock, $20 par	190,000		70,000
Paid-in capital: Excess of issue price over par-common stock	456,000		336,000
Retained earnings	1,526,000		1,567,200
Total liabilities and stockholders’ equity	$2,880,640		$2,550,760

ACCOUNT Equipment	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			273,580
Jan. 26	Discarded, no salvage		30,100	243,480
Aug. 11	Purchased for cash	66,030		309,510

ACCOUNT Accumulated Depreciation-Equipment	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				95,620
Jan. 26	Equipment discarded	30,100			65,520
Dec. 31	Depreciation for year		19,590		85,110

ACCOUNT Paid-in Capital in Excess of Par-Common Stock	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				336,000
Dec. 7	Issued 6,000 shares of common stock for $40 per share		120,000		456,000

ACCOUNT Retained Earnings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				1,567,200
Dec. 31	Net loss	19,840			1,547,360
Dec. 31	Cash dividends	21,360			1,526,000