IBEK Co.

Work Sheet
December 31, 2018
Income Balance
Trial Balance Adjustments Statement Sheet
Account Debit Credit Debit Credit Debit Credit Debit Credit
Cash 35,000 35,000
Accounts Receivable 91,000 91,000
Allowance for Doubtful Accounts 1,800 (b) 2,000 3,800
Inventory, 12/31/01 84,000 (a) 8,000 92,000
Long-Term Investments 27,500 27,500
Land 53,400 53,400
Buildings 112,500 112,500
Accumulated Depreciation—Bldg 26,780 (c) 10,500 37,280
Accounts Payable 47,300 47,300
Mortgage Payable 99,500 99,500
Capital Stock, $5 par 175,000 175,000
Retained Earnings, 12/31/2017 14,840 14,840
Dividends 9,670 9,670
Sales 359,000 359,000
Sales Returns 12,890 12,890
Sales Discounts 7,540 7,540
Purchases 159,000 (a) 159,000
Purchase Discounts 6,780 (a) 6,780
Freight-In 6,300 (a) 6,300
Selling Expenses 62,350 (d) 8,600 70,950
Office Expenses 38,900 38,900
Insurance Expense 14,000 (f) 4,000 10,000
Supplies Expense 4,800 (e) 1,250 3,550
Taxes—Real Estate and Payroll 9,500 (h) 2,340 11,840
Interest Revenue 550 (g) 850 1,400
Interest Expense 3,200 (i) 1,780 4,980

Cost of Goods Sold .……... .……... (a) 150,520 150,520

Doubtful Accounts Expense .……... .……... (b) 2,000 2,000
Depreciation Expense—Buildings .……... .……... (c) 10,500 10,500
Selling Expenses Payable .……... .……... (d) 8,600 8,600
Supplies .……... .……... (e) 1,250 1,250
Prepaid Insurance .……... .……... (f) 4,000 4,000
Interest Receivable .……... .……... (g) 850 850
Real Estate and Payroll
Taxes Payable .……... .……... (h) 2,340 2,340
Interest Payable .……... .……... (i) 1,780 1,780
Income Taxes Payable .……... .……... (j) 14,692 14,692
Income Tax Expense .……... .……... (j) 14,692 14,692
731,550 731,550 211,312 211,312 338,362 360,400 427,170 405,132
Net Income 22,038 22,038
360,400 360,400 427,170 427,170
 ABCD, Inc.
Statement of Cash Flows (Direct Method)
For the Year Ended December 31, 2018
Cash flows from operating activities:
1
Cash receipts from customers $ 698,600
Cash payments for:
Inventory $ 367,800 2
Operating expenses 176,800 3
4
Interest expense 3,800
5
Income taxes 33,600 582,000
Net cash provided by operating activities $ 116,600
COMPUTATIONS:
1
Cash receipts from customers:
Accounts receivable at beginning of year $ 26,600
Add: Sales on account 704,000
Total accounts to be collected $ 730,600
Less: Accounts receivable at the end of year 32,000
Total cash received from customers $ 698,600
2
Cash payments for inventory:
Inventory at end of year $ 21,000
Add: Cost of goods sold 368,000
Total goods available for sale $ 389,000
Less: Inventory at beginning of year 25,400
Purchases for the year on account $ 363,600
Add: Accounts payable at the beginning of year 11,200
Total accounts to be paid $ 374,800
Less: Accounts payable at the end of year 7,000
Total cash paid for inventory $ 367,800
3
Cash payments for operating expenses:
Operating expenses $ 185,000
Less: Noncash item: Depreciation expense (7,000)
Less: Interest expense reported separately (2,800)
Add: Prepaid insurance at the end of year 5,600
Less: Prepaid insurance at beginning of year (4,000)
Total cash paid for operating expenses $ 176,800
4
Cash payments for interest:
Interest expense $ 2,800
Add: Interest payable at beginning of year 2,000
Less: Interest payable at end of year (1,000)
Total cash paid for interest $ 3,800
5
Cash payments for income taxes:
Income tax expense $ 37,600
Add: Income taxes payable at beginning of year 8,000
Less: Income taxes payable at end of year (12,000)
Total cash paid for income taxes $ 33,600

Oom Feii Corporation

Balance Sheet
December 31, 2019
Assets Liabilities
Current assets:Current liabilities:
Cash $ 8,500 Accounts payable $ 3,400
Investment securities 5,250 Current portion of bonds
Accounts receivable, net 21,350 payable 2,500
Inventory 31,000 Loan due on demand 7,000
Land held for resale 8,000 Dividends payable 15,000
Other current assets 10,200 Other 2,000
Total current assets $ 84,300 Total current liabilities $ 29,900
Long-term liabilities:
Noncurrent assets: Bonds payable $ 7,500
Investments $ 2,750 Other liabilities 15,750
Property, plant, and Total long-term
equipment, net 56,800 liabilities $ 23,250
Restricted cash: Total liabilities $ 53,150
For preferred stock 19,000 Owners' Equity
For equipment 4,000 Preferred stock $ 19,000
Advance to company Common stock 50,000
president 4,000 Retained earnings 66,800
Other noncurrent assets 13,600 Less: Treasury stock (4,500)
Total noncurrent Total owners' equity $131,300
assets $100,150 Total liabilities and owners'
Total assets $184,450 equity $184,450
COMPUTATIONS:
Cash: $12,500 – $4,000 (a)
Investment securities: $8,000 – $2,750 (b)
Other current assets: $14,200 – $4,000 (c)
Property, plant, and equipment: $64,800 – $8,000 (h)
Restricted cash: $19,000 (g)
$4,000 (a)
Investments: $2,750 (b)
Advance to company president: $4,000 (c)
Current portion of bonds payable: $2,500 (d)
Loan due on demand: $7,000 (e)
Dividends payable: $15,000 (f)
Long-term liabilities: $32,750 – $2,500 (d) – $7,000 (e)
Preferred stock: $19,000 (g)
Retained earnings: $81,800 – $15,000 (f)
Treasury stock: formerly shown incorrectly as long-term asset