The comparative balance sheet of Reston Supply Co. at December 31, 2008 and 2007, is as follows:
|
|
Dec. 31, 2008 |
Dec. 31, 2007 |
|
Assets |
|
|
|
Cash |
$ 45,500 |
$ 51,200 |
|
Accounts receivable (net) |
106,700 |
92,400 |
|
Inventories |
139,200 |
131,200 |
|
Prepaid expenses |
2,800 |
4,000 |
|
Land |
150,000 |
210,000 |
|
Buildings |
300,000 |
150,000 |
|
Accumulated depreciation—buildings |
(60,200) |
(55,500) |
|
Equipment |
100,100 |
80,300 |
|
Accumulated depreciation—equipment |
(20,200) |
(24,500) |
|
|
$763,900 |
$639,100 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
Accounts payable (merchandise creditors) |
$ 90,000 |
$ 95,600 |
|
Income tax payable |
4,000 |
3,200 |
|
Bonds payable |
50,000 |
0 |
|
Common stock, $1 par |
33,000 |
30,000 |
|
Paid in capital in excess of par—common stock |
180,000 |
120,000 |
|
Retained earnings |
406,900 |
390,300 |
|
|
$763,900 |
$639,100 |
The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2008 are as follows:
|
ACCOUNT Land |
ACCOUNT NO. |
||||||
|
Date |
Item |
|
Debit |
Credit |
Balance |
||
|
Debit |
Credit |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
210,000 |
|
|
Apr. |
20 |
Realized $69,000 cash |
|
|
|
|
|
|
|
|
from sale |
|
|
60,000 |
150,000 |
|
|
ACCOUNT Buildings |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
150,000 |
|
|
Apr. |
20 |
Acquired for cash |
|
150,000 |
|
300,000 |
|
|
ACCOUNT Accumulated Depreciation—Buildings |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
|
55,500 |
|
Dec. |
31 |
Depreciation for year |
|
|
4,700 |
|
60,200 |
|
ACCOUNT Equipment |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
80,300 |
|
|
|
26 |
Discarded, no salvage |
|
|
10,000 |
70,300 |
|
|
Aug. |
11 |
Purchased for cash |
|
29,800 |
|
100,100 |
|
|
ACCOUNT Accumulated Depreciation—Equipment |
ACCOUNT NO. |
|||||||
|
2008 |
|
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
|
24,500 |
|
|
|
26 |
Equipment discarded |
10,000 |
|
|
|
14,500 |
|
|
Dec. |
31 |
Depreciation for year |
|
|
5,700 |
|
20,200 |
|
|
ACCOUNT Bonds Payable ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
May |
1 |
Issued 20 year bonds |
|
50,000 |
|
50,000 |
|
ACCOUNT Common Stock, $1 par |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
|
30,000 |
|
Dec. |
7 |
Issued 3,000 shares of common |
|
|
|
|
|
|
|
|
stock for $21 per share |
|
|
3,000 |
|
33,000 |
|
ACCOUNT Paid In Capital in Excess of Par—Common Stock |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
120,000 |
|
|
Dec. |
7 |
Issued 3,000 shares of common |
|
|
|
|
|
|
|
|
stock for $21 per share |
|
60,000 |
|
180,000 |
|
|
ACCOUNT Retained Earnings |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
390,300 |
|
|
Dec. |
31 |
Net income |
|
28,600 |
|
418,900 |
|
|
|
31 |
Cash dividends |
12,000 |
|
|
406,900 |
|
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.