21. Partial balance sheet data and additional information for Deloitte Industrie
ID: 2567279 • Letter: 2
Question
21. Partial balance sheet data and additional information for Deloitte Industries are given below:
Deloitte Industries
Comparative Balance Sheet
December 31, 2012 and 2011
Assets
2012
2011
Land, buildings, and equipment ...............
$325,000
$200,000
Accumulated depreciation--buildings and
equipment ..................................
(75,000)
(50,000)
Equities
Common stock ($25 par)........................
300,000
200,000
Additional paid-in capital ...................
40,000
0
Retained earnings ............................
30,000
20,000
Additional information:
(a)
June 15, 2012--issued 4,000 shares of common stock for cash.
(b)
July 1, 2012--purchased new equipment for cash.
(c)
December 31, 2012--paid cash dividends of $40,000.
Prepare the investing and financing activities sections of the statement of cash flows for the year ending December 31, 2012.
22. The Sage Corporation prepared, for 2012 and 2011, the following balance sheet data:
December 31
2012
2011
Cash ....................................
$ 87,375
$ 63,750
Available-for-sale securities (not cash
equivalents) ..........................
17,250
105,000
Accounts receivable .....................
90,000
86,250
Merchandise inventory ...................
187,500
163,500
Prepaid insurance .......................
1,125
1,500
Land, buildings, and equipment ..........
1,378,875
1,087,500
Accumulated depreciation ................
(558,750)
(498,750)
Total .................................
$1,203,375
$1,008,750
Accounts payable ........................
$ 153,375
$ 236,250
Salaries payable ........................
18,750
26,250
Notes payable--bank (current) ...........
37,500
150,000
Bonds payable ...........................
375,000
0
Common stock ............................
600,000
600,000
Retained earnings (deficit) .............
18,750
(3,750)
Total .................................
$1,203,375
$1,008,750
Additional information:
(a)
Sold available-for-sale securities (not cash equivalents) costing $87,750 for $90,000.
(b)
Equipment costing $18,750 with a book value of $3,750 was sold for $4,500. This means that the Accum. Depr was $15,000 so the depreciation expense for the year was $75,000.
(c)
Issued 8% bonds payable at par, $375,000.
(d)
Purchased new equipment for cash, $310,125.
(e)
Paid cash dividends of $22,500 during the year.
(f)
Net income for 2012 was $45,000.
(g)
Proceeds from the notes payable were used for operating purposes.
Deloitte Industries
Comparative Balance Sheet
December 31, 2012 and 2011
Assets
2012
2011
Land, buildings, and equipment ...............
$325,000
$200,000
Accumulated depreciation--buildings and
equipment ..................................
(75,000)
(50,000)
Equities
Common stock ($25 par)........................
300,000
200,000
Additional paid-in capital ...................
40,000
0
Retained earnings ............................
30,000
20,000
Explanation / Answer
21) Prepare the investing and financing activities sections of the statement of cash flows for the year ending December 31, 2012.
Cash flow from investing activities Purchase new equipment (125000) Net cash flow from investing activities (125000) Cash flow from financing activities Issue common stock 140000 Dividend paid (40000) Net cash flow from financing activities 100000Related Questions
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