A)

Chekov Corporation's
Statement of Cash Flows
For The Year Ended 2019

CASH FLOWS FROM OPERATING ACTIVITIES :

Net income
Adjustments to reconcile net income to net cash provided by operating activities)
Loss on sale of equipment ( see note 1 )
Depreciation expense ( $ 4,000 + $ 9,000 )
Patent amortization
Increase in current liabilities ( cash will be increase )
Increase in current assets other than cash ( cash will be decrease)
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES :
Sales of equipment
Addition to building
Long term investment in stock
Net cash used by investing activities
CASH FLOWS FROM FINANCING ACTIVITIES :
Issue of bonds
Payment of dividend
Purchase of treasury stock
Net cash provided by investing activities
NET INCREASE IN CASH ( $ 61,500 -$ 34,000 + $ 14,000 )

NOTE 1:
To find out loss on sale of equipment :
Cost of equipment $ 20,000
less: accumulated depreciation ( $ 8,000)
Book value of equipment $ 12,000
less: sale of equipment ($ 9,000)
loss on sale of equipment $ 3,000

B)
Chekow corporation's
Statement of financial position
As on december 31,2019

ASSETS :
Current asset
Long term investment
Property , plant and equipment :
Land
Building ( $ 120,000 + $ 27,000 )
less: accumulated depreciation ( $ 30,000 +$ 4,000 )
Equipment ( $ 90,000 -$ 20,000)
less: accumulated depreciation ( $ 11,000 -$ 8,000 +$ 9,000 )
Total property , plant and equipment :
Intangible assets :
Patents ( $ 40,000 - $ 2,500 )
TOTAL ASSETS ( $ 296,500 + $ 16,000 + $ 201,000 +$ 37,500 )

LIABILITIES AND STOCKHOLDERS EQUITY :

Current liabilities ( $ 150,000 + $ 13,000 )
Long term liabilities :
Bonds payable ( $ 100,000 + $ 50,000 )
Total liabilities

Stockholders equity :
Common stock
Retained earnings ( see note 2 )
Total paid in capital and retained earnings
less: cost of treasury stock
Total stockholders equity
Total liabilities and stockholders equity

Note 2 :
To find out retained earnings :
Beginning retained earnings December 31,2019 $ 44,000
add: net income $ 55,000
less ; cash dividend paid ( $ 25,000 )
Ending retained earnings December 31,2020 $ 74,000

note 3 :

Here , accounting equation ,

Total assets = total liabilities+ stockholders equity
Total assets= $ 313,000 +$ 243,000
Total assets = $ 556,000
To find out current assets :
Here, total assets = current assets + long term investments +total property , plant and equipment + intangible assets( paten
$ 556,000 = current assets+ $ 16,000 +$ 201,0000 + $ 37,500
Current assets = $ 556,000 -$ 16,000 -$ 201,000 - $ 37,500
Current assets = $ 301,500
rporation's
f Cash Flows
Ended 2019

amount ($) amount ($)

$ 55,000

$ 3,000
$ 13,000
$ 2,500
$ 13,000
( $ 25,000 ) $ 6,500
$ 61,500

$ 9,000
( $ 27,000)
( $ 16,000)
( $34,000)

$ 50,000
($ 25,000)
($ 11,000 )
$ 14,000
$ 41,500

rporation's
nancial position
ber 31,2019
Amount ($) Amount ($)

$301,500
$16,500

$ 30,000
$ 147,000
( $ 34,000 ) $ 113,000
$ 70,000
( $ 12,000) $ 58,000
 $ 201,000

$ 37,500
$ 551,000

$ 163,000

$ 150,000
$ 313,000

$ 180,000
$ 74,000
$ 254,000
( $ 11,000 )
$ 243,000
$ 556,000

( $ 25,000 )

ment + intangible assets( patents)

 ASIAN PACIFIC LIMITED
STATEMENT OF FINANCIAL POSITION
As of December 31, 2019

ASSETS
CURRENT ASSETS:
Cash
Accounts Receivable $ 163,500.00
Allowance for Doubtful Accounts $ (8,700.00)
Prepaid Insurance
Inventory

NON-CURRENT ASSETS
Long-Term Investments
Land
Construction Work In Process
Patents $ 40,000.00
Accumulated Amortization - Patents $ (4,000.00)
Equipment $ 400,000.00
Accumulated Depreciation - Equipment $ (240,000.00)

TOTAL ASSETS

LIABILITIES AND SHAREHOLDERS EQUITY

LIABILITIES
CURRENT LIABILITIES:
Accounts Payable
Accrued Expenses
Notes Payable

NON-CURRENT LIABILITIES:
Bonds Payable
TOTAL LIABILITIES

SHAREHOLDER'S EQUITY
Common Stock (600,000 shares authorized, 500,000
shares issued and outstanding, $1 par per stock)
Paid-in Capital in Excess of Par - Common Stock
Retained Earnings
TOTAL SHAREHOLDER'S EQUIY

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

The patents we're presented in the financial statement at its historical cost and also included an accumulated amortization
The notes payable were presented as current liabilities since it is due by 2020; while the bonds payable were presented as
However, the financial statement was not balanced due to the incorrect balance of the given data on the trial balance. The
ION

$ 41,000.00

$ 154,800.00
$ 5,900.00
$ 208,500.00 $ 410,200.00

$ 339,000.00
$ 85,000.00
$ 124,000.00

$ 36,000.00

$ 160,000.00 $ 744,000.00

$ 1,154,200.00

QUITY

$ 148,000.00
$ 49,200.00
$ 94,000.00 $ 291,200.00

$ 200,000.00 $ 200,000.00
$ 491,200.00

$ 500,000.00
$ 45,000.00
$ 138,000.00
$ 683,000.00

$ 1,174,200.00

uded an accumulated amortization which is the difference of the cost and the amount presented in the trial balance (40,000 - 36,000)
bonds payable were presented as non-current liabilities for it will be due on 2030.
given data on the trial balance. The trial balance if recomputed the total debits is 1,409,200 and the total credits is 1,429,200.
l balance (40,000 - 36,000) which is equal to 4,000.

edits is 1,429,200.