Boca Inc. Balance Sheets December 31 Assets Cash Accounts Receivable Inventory Prepaid Expenses Long-term Investments...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Boca Inc. Balance Sheets December 31 Assets Cash Accounts Receivable Inventory Prepaid Expenses Long-term Investments Plant Assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts Payable Wages Payable Dividends Payable Bonds Payable Common Stock Retained Earnings Total 2020 2019 $41,400 $48,400 29,600 29,000 86,000 38,000 112,500 102,850 137,000 109,000 368,000 239,500 (50,000) (52,000) $724,500 $514,750 $16,500 $20,000 62,000 67,300 10,000 6,000 170,000 140,000 262,000 175,000 204,000 106,450 $724,500 $514,750 Additional Information: 1. Old plant assets having an original cost of $57,500 and a book value of $48,500 were sold for $50,000 cash. 2. A new plant asset was purchased directly in exchange for common stock valued at $26,000. 3. New bonds were issued at par for $38,000 4. Net income was $154,490. 5. A $1,000 prior period adjustment was recorded in 2020 correcting an overstatement of depreciation in 2015. The 2019 balance sheet is appropriately restated. 6. Long-term Investments costing $20,000 were sold for $22,000. Required 1. Prepare a 2020 statement of cash flows using the indirect method. Use the textbook format (illustrations 238, 23.12, 23.16). Do not submit supporting computations
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
