Grant Wood Corporationâs balance sheet at the end of 2013included the following items.
Current assets $236,608 Current liabilities $151,608 Land 31,454Bonds payable 101,608 Buildings 121,608 Common stock 181,454Equipment 91,454 Retained earnings 45,454 Accum. depr.-buildings(31,608 ) Total $480,124 Accum. depr.-equipment (11,000 ) Patents41,608 Total $480,124
The following information is available for 2014. 1. Net incomewas $55,639.
2. Equipment (cost $21,608 and accumulated depreciation $9,608)was sold for $10,000.
3. Depreciation expense was $5,608 on the building and $10,608on equipment.
4. Patent amortization was $2,500.
5. Current assets other than cash increased by $29,000. Currentliabilities increased by $14,608.
6. An addition to the building was completed at a cost of$28,608.
7. A long-term investment (Equity) in stock was purchased for$16,000.
8. Bonds payable of $51,454 were issued.
9. Cash dividends of $30,000 were declared and paid.
10. Treasury stock was purchased at a cost of $11,000.
a. Prepare a statement of cash flows for 2014. (Showamounts that decrease cash flow with either a - sign e.g. -15,000or in parenthesis e.g. (15,000).)
b. Prepare a balance sheet at December 31, 2014. (Show onlytotals for current assets and current liabilities.)(List Property, Plant and Equipment in order of Land,Building and Equipment.)
Grant Wood Corporationâs balance sheet at the end of 2013included the following items.
Current assets $236,608 Current liabilities $151,608 Land 31,454Bonds payable 101,608 Buildings 121,608 Common stock 181,454Equipment 91,454 Retained earnings 45,454 Accum. depr.-buildings(31,608 ) Total $480,124 Accum. depr.-equipment (11,000 ) Patents41,608 Total $480,124
The following information is available for 2014. 1. Net incomewas $55,639.
2. Equipment (cost $21,608 and accumulated depreciation $9,608)was sold for $10,000.
3. Depreciation expense was $5,608 on the building and $10,608on equipment.
4. Patent amortization was $2,500.
5. Current assets other than cash increased by $29,000. Currentliabilities increased by $14,608.
6. An addition to the building was completed at a cost of$28,608.
7. A long-term investment (Equity) in stock was purchased for$16,000.
8. Bonds payable of $51,454 were issued.
9. Cash dividends of $30,000 were declared and paid.
10. Treasury stock was purchased at a cost of $11,000.
a. Prepare a statement of cash flows for 2014. (Showamounts that decrease cash flow with either a - sign e.g. -15,000or in parenthesis e.g. (15,000).)
b. Prepare a balance sheet at December 31, 2014. (Show onlytotals for current assets and current liabilities.)(List Property, Plant and Equipment in order of Land,Building and Equipment.)
Related questions
Grant Wood Corporation’s balance sheet at the end of 2019 included the following items.
| Current assets (Cash $82,000) | $235,000 | Current liabilities | $150,000 |
| Land | 30,000 | Bonds payable | 100,000 |
| Buildings | 120,000 | Common stock | 180,000 |
| Equipment | 90,000 | Retained earnings | 44,000 |
| Accum. depr.—buildings | (30,000) | Total | $474,000 |
| Accum. depr.—equipment | (11,000) | ||
| Patents | 40,000 | ||
| Total | $474,000 |
The following information is available for 2020.
1. Net income was $55,000.
2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $10,000.
3. Depreciation expense was $4,000 on the building and $9,000 on equipment.
4. Patent amortization was $2,500.
5. Current assets other than cash increased by $29,000. Current liabilities increased by $13,000.
6. An addition to the building was completed at a cost of $27,000.
7. A long-term investment in stock was purchased for $16,000.
8. Bonds payable of $50,000 were issued.
9. Cash dividends of $30,000 were declared and paid.
10. Treasury stock was purchased at a cost of $11,000.
Instructions
(Show only totals for current assets and current liabilities.)
a. Prepare a statement of cash flows for 2020.
b. Prepare a balance sheet at December 31, 2020.
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:
| Current Assets | Liabilities | ||||
| Cash | $ | 26,000 | Accounts payable | $ | 28,000 |
| Accounts receivable | 31,000 | Notes payable | 36,000 | ||
| Inventory | 41,000 | Bonds payable | 66,000 | ||
| Prepaid expenses | 13,600 | ||||
| Fixed Assets | Stockholdersâ Equity | ||||
| Gross plant and equipment | $ | 266,000 | Preferred stock | $ | 36,000 |
| Less: Accumulated depreciation | 53,200 | Common stock | 71,000 | ||
| Paid in Capital | 41,000 | ||||
| Net plant and equipment | $ | 212,800 | Retained earnings | 46,400 | |
| Total assets | $ | 324,400 | Total liabilities and stockholdersâ equity | $ | 324,400 |
Sales for 20X2 were $300,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $30,000. Depreciation expense was 9 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 11 percent, while the interest rate on the bonds payable was 13 percent. This interest expense is based on December 31, 20X1 balances. The tax rate averaged 25 percent.
$3,600 in preferred stock dividends were paid, and $9,410 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding.
During 20X2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 11 percent. A new machine was purchased on December 31, 20X2, at a cost of $51,000.
Accounts payable increased by 25 percent. Notes payable increased by $7,600 and bonds payable decreased by $18,000, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change.
a. Prepare an income statement for 20X2. (Round EPS answer to 2 decimal places.)
For December 31, 20X1, the balance sheet of Baxter Corporation was as follows:
| Current Assets | Liabilities | ||||
| Cash | $ | 26,000 | Accounts payable | $ | 28,000 |
| Accounts receivable | 31,000 | Notes payable | 36,000 | ||
| Inventory | 41,000 | Bonds payable | 66,000 | ||
| Prepaid expenses | 13,600 | ||||
| Fixed Assets | Stockholdersâ Equity | ||||
| Gross plant and equipment | $ | 266,000 | Preferred stock | $ | 36,000 |
| Less: Accumulated depreciation | 53,200 | Common stock | 71,000 | ||
| Paid in Capital | 41,000 | ||||
| Net plant and equipment | $ | 212,800 | Retained earnings | 46,400 | |
| Total assets | $ | 324,400 | Total liabilities and stockholdersâ equity | $ | 324,400 |
Sales for 20X2 were $300,000, and the cost of goods sold was 55 percent of sales. Selling and administrative expense was $30,000. Depreciation expense was 9 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 11 percent, while the interest rate on the bonds payable was 13 percent. This interest expense is based on December 31, 20X1 balances. The tax rate averaged 25 percent.
$3,600 in preferred stock dividends were paid, and $9,410 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding.
During 20X2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 11 percent. A new machine was purchased on December 31, 20X2, at a cost of $51,000.
Accounts payable increased by 25 percent. Notes payable increased by $7,600 and bonds payable decreased by $18,000, both at the end of the year. The preferred stock, common stock, and capital paid in excess of par accounts did not change.
a. Prepare a statement of retained earnings for 20X2.
