Question

In: Accounting

During calendar-year 2019, The Hammond Corporation had the following information in its accounting records: Paid cash...

During calendar-year 2019, The Hammond Corporation had the following information in its accounting records: Paid cash dividends of $42,000. Issued common stock for $30,000 in cash. Cash balance, December 31, 2019 - $________. Acquired land costing $80,000, in exchange for a long-term note payable. A building with an adjusted cost basis of $42,000 was destroyed by fire. Increase in the inventory account during the year - $5,000. Depreciation expense for the year was $28,000. Amortization expense for a trademark was $1,000. A 2016 investment in bonds, originally purchased for $33,000, was sold for $38,000. Hammond’s earnings for the year from an equity-method investee was $6,000. Issued preferred stock for $50,000 in cash. Increase in net accountants receivable account during the year - $9,000. Decrease in accounts payable account during the year - $20,000. Retired debentures payable at their face value for $130,000 in cash. Increase in the deferred income tax liability balance during the year - $3,000. Cash balance, January 1, 2019 - $55,000. Net sales for the year were $320,000. Net income for the year was $22,000. Using the information above, prepare a statement of cash flows (indirect method) for The Hammond Corporation, for the year ended December 31, 2019.

Solutions

Expert Solution

Note:

  1. Destruction of building in fire does not result in any cash flows.
  2. Be careful while reading amounts (with commas).
  3. If you still have any doubt, feel free to ask in comment section.

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

During calendar-year 2019, The Hammond Corporation had the following information in its accounting records: Paid cash...
During calendar-year 2019, The Hammond Corporation had the following information in its accounting records: Paid cash dividends of $42,000. Issued common stock for $30,000 in cash. Cash balance, December 31, 2019 - $________. Acquired land costing $80,000, in exchange for a long-term note payable. A building with an adjusted cost basis of $42,000 was destroyed by fire. Increase in the inventory account during the year - $5,000. Depreciation expense for the year was $28,000. Amortization expense for a trademark was...
Handout 5 Mega keeps its accounting records on a cash basis during the year. At year...
Handout 5 Mega keeps its accounting records on a cash basis during the year. At year end, it converts its books to the accrual basis for preparing its financial statements. At the end of 2016, Mega reported the following post-closing trial balance after converting it to the accrual basis. [Hint: These will also be the beginning balances for 2017.] December 31, 2016 (accrual) Debit $ 2,700 4,200 2,100 5,600 12,000 $ 4,800 6,100 500 2,000 7,000 6,200 Credit Cash Accounts...
Question 4 StorageTek Corporation gathered the following information from its accounting records for the year ended...
Question 4 StorageTek Corporation gathered the following information from its accounting records for the year ended December 31, 2016, prior to adjustment:     Net credit sales for the year = $1,150,000     Accounts Receivable (Dec 31, 2016) = $93,000     Allowance for Uncollectible Accounts, prior to adjustment (Dec 31, 2016) = $6,000 debit balance     StorageTek Corporation uses the allowance method of accounting for bad debts and estimates bad debts at 3% of net credit sales.    Prepare the adjusting...
Problem 17-47 (LO. 5) The following information for 2019 relates to Sparrow Corporation, a calendar year,...
Problem 17-47 (LO. 5) The following information for 2019 relates to Sparrow Corporation, a calendar year, accrual method taxpayer: Net income per books (after-tax) $205,050 Federal income tax expense per books 55,650 Tax-exempt interest income 4,500 MACRS depreciation in excess of straight-line depreciation used for financial statement purposes 7,200 Excess of capital losses over capital gains 9,400 Nondeductible meals and entertainment 5,500 Interest on loan to purchase tax-exempt bonds 1,100 a. Regarding items that would be added back on the...
Reggie, who is 55, had AGI of $36,000 in 2019. During the year, he paid the...
Reggie, who is 55, had AGI of $36,000 in 2019. During the year, he paid the following medical expenses: Drugs (prescribed by physicians) $ 580 Marijuana (prescribed by physicians) 1,480 Health insurance premiums–after taxes 1,250 Doctors’ fees 1,330 Eyeglasses 455 Over-the-counter drugs 280 Required: Reggie received $580 in 2019 for a portion of the doctors’ fees from his insurance. What is Reggie’s medical expense deduction?
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.                     Advertising expense $ 30,000   Direct labor $ 673,600   Depreciation expense—Office equipment   10,300   Income taxes expense   293,900   Depreciation expense—Selling equipment   10,300   Indirect labor   58,000   Depreciation expense—Factory equipment   31,700   Miscellaneous production costs   9,200   Factory supervision   126,300  ...
The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.
    The following calendar year-end information is taken from the December 31, 2019, adjusted trial balance and other records of Leone Company.                    Advertising expense $ 30,000   Direct labor $ 673,600   Depreciation expense—Office equipment   10,300   Income taxes expense   293,900   Depreciation expense—Selling equipment   10,300   Indirect labor   58,000   Depreciation expense—Factory equipment   31,700   Miscellaneous production costs   9,200   Factory supervision   126,300...
During the year of 2019, XYZ Company had the following financial information: Work in process (beginning)...
During the year of 2019, XYZ Company had the following financial information: Work in process (beginning) $1,080 Work in process (ending) 950 Finished Goods (beginning) 0 Finished Goods (ending) 100 Sales 2,000 Raw Materials used 500 Labour (note 1) 200 Production facility Rent 400 Utilities (note 2) 100 Advertising 200 Note 1: 75% of Labour costs are Direct Labour and the remaining costs are indirect manufacturing Labour Note 2: 80% of Utilities are product costs Note 3: At the end...
Diana Gomez Corporation, a manufacturer of cowboy boots, provided the following information from its accounting records...
Diana Gomez Corporation, a manufacturer of cowboy boots, provided the following information from its accounting records for the year ended December 31, 2017. Inventory at December 31, 2017 (based on a physical count of goods on December 31, 2017) $ 1,700,000 Accounts payable at December 31, 2017 1,150,000 Net sales (sales less returns and allowances) Additional information is as follows: A- Work-in-process inventory costing $30,000 was sent to an outside processor for hand-tooling on December 30, 2017, and was therefore...
Diana Gomez Corporation, a manufacturer of cowboy boots, provided the following information from its accounting records...
Diana Gomez Corporation, a manufacturer of cowboy boots, provided the following information from its accounting records for the year ended December 31, 20X1. Inventory at December 31, 20X1 (based on a physical count of goods on December 31, 20X1) $ 1,700,000 Accounts payable at December 31, 20X1 1,150,000 Net sales (sales less returns and allowances) 9,500,000 Additional information is as follows: a. Work-in-process inventory costing $30,000 was sent to an outside processor for hand-tooling on December 30, 20X1, and was...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT