In: Accounting
Typewritten answers only, please. No handwritten answers.
Thank you.
Golden Manufacturing Company started operations by acquiring $111,000 cash from the issue of common stock. On January 1, 2018, the company purchased equipment that cost $101,000 cash, had an expected useful life of five years, and had an estimated salvage value of $10,100. Golden Manufacturing earned $99,310 and $69,480 of cash revenue during 2018 and 2019, respectively. Golden Manufacturing uses double-declining-balance depreciation.
Prepare an income statements for 2018 and 2019. Use a vertical statements format. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)
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b-2. Prepare a balance sheets for 2018 and 2019. Use a vertical statements format. (Do not round intermediate calculations. Round the final answers to nearest dollar amount.)
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b-3. Prepare a statements of cash flows for 2018 and 2019. Use a vertical statements format. (Amounts to be deducted should be indicated with minus sign. Do not round intermediate calculations. Round the final answers to nearest dollar amount.)
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Typewritten answers only, please. No handwritten answers.
Thank you.
Year | Book value of the asset at the start of the year | Rate of declining Blance | Depreciation expense | Accumuluted depreciation | Book Value of asset at the end of the year | |
2018 | 101000 | 40% | 40400 | 40400 | 60600 | |
2019 | 60600 | 40% | 24240 | 64640 | 36360 | |
2020 | 36360 | 40% | 14544 | 79184 | 21816 | |
2021 | 21816 | 40% | 8726.4 | 87910.4 | 13089.6 | |
2022 | 13089.6 | 40% | 2989.6 | 90900 | 10100 | |
Golden manufacturing company | ||||||
Income Statement | ||||||
For the year ended 31 | ||||||
2018 | 2019 | |||||
Sales Revenue | 99310 | 69480 | ||||
Less : Expenses | ||||||
Deprciation | 40400 | 24240 | ||||
Net Income | 58910 | 45240 | ||||
Golden manufacturing company | ||||||
Balance sheet | ||||||
As of December 31 | ||||||
2018 | 2019 | |||||
Asset | ||||||
Current Asset | ||||||
Cash | 109310 | 178790 | ||||
Equipment | 101000 | 101000 | ||||
Less : Accumulated Depreciation | 40400 | 64640 | ||||
Equipement Net | 60600 | 36360 | ||||
Total Assets | 169910 | 215150 | ||||
Liabilities & Shareholder's Equity | ||||||
Common Stock | 111000 | 111000 | ||||
Retained Earnings | 58910 | 104150 | ||||
Total Liabilities & Shareholder's Equity | 169910 | 215150 | ||||
Golden manufacturing company | ||||||
Statement of Cash flows | ||||||
For the year ended 31 | ||||||
2018 | 2019 | |||||
Cash flows from operating activities | ||||||
Net Income | 58910 | 45240 | ||||
Add : Depreciation | 40400 | 24240 | ||||
Cash flows from operating activities | 99310 | 69480 | ||||
Cash flows from Investing activites | ||||||
Purchase of equipment | -101000 | 0 | ||||
Cash flows from financing activities | ||||||
Issuance of common stock | 111000 | 0 | ||||
Net Change in cash | 109310 | 69480 | ||||
Add: Beginning balance | 0 | 109310 | ||||
Ending balance | 109310 | 178790 | ||||
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