QUESTION 2 Cash Accounts Receivable Inventories Investments Land Equipment Accumulated depreciation- Equipment Accounts payable Accrued expenses Dividends payable Common stock Paid-in capital in excess of par Retained earnings XYZ Company Balance Sheet December 31, 20X2 Dec. 31, 20X2 25,000 30,000 23,000 15,000 60,000 88,000 (8,000) 233,000 16,000 20,000 25,000 120,000 20,000 32,000 233,000 a. The investments were sold for $24,000 cash. b. Equipment and land were acquired for cash. Dec. 31, 20X1 22,000 10,000 19,000 40,000 0 54,000 (5,000) 140,000 18,000 3,000 14,000 80,000 15,000 10,000 140,000 Inc./Dec. 3.000 20,000 4,000 (25,000) 60,000 34,000 3,000 (2,000) 17,000 11,000 40,000 5,000 22,000 100 points
a. The invostments wore soid for $24,000 cash. b. Equipment and land wore acquired for cash a. The investinents were sold for $24,000 cash. b. Equipment and land were acquired for cash c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $50,000 credit to Retained Eamings for net income, t. Thero was a $28,000 dobit to Retained Earnings for cash dividends doclared. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|l|}{} & STATEMENT OF CASH FLOWS \\ \hline \begin{tabular}{l} Cash flows from Operating \\ Activities: \end{tabular} & & & \\ \hline Net Income & S & \\ \hline Add: & & \\ \hline & & \\ \hline Deduct: & & \\ \hline \end{tabular} 
