The comparative balance sheet of Rise N’ Shine Juice Co. at December 31, 2008 and 2007, is as follows:
|
|
Dec. 31, 2008 |
Dec. 31, 2007 |
|
Assets |
|
|
|
Cash |
$ 392,300 |
$ 412,300 |
|
Accounts receivable (net) |
354,200 |
325,600 |
|
Inventories |
542,100 |
497,000 |
|
Prepaid expenses |
12,500 |
15,000 |
|
Land |
135,000 |
205,000 |
|
Buildings |
625,000 |
385,000 |
|
Accumulated depreciation—buildings |
(174,600) |
(163,400) |
|
Equipment |
218,900 |
194,300 |
|
Accumulated depreciation—equipment |
(60,400) |
(67,800) |
|
|
$2,045,000 |
$1,803,000 |
|
Liabilities and Stockholders’ Equity |
|
|
|
Accounts payable (merchandise creditors) |
$ 394,200 |
$ 409,500 |
|
Bonds payable |
115,000 |
0 |
|
Common stock, $1 par |
58,000 |
50,000 |
|
Paid in capital in excess of par—common stock |
400,000 |
240,000 |
|
Retained earnings |
1,077,800 |
1,103,500 |
|
|
$2,045,000 |
$1,803,000 |
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 |
|
|
|
205,000 |
|
|
Apr. |
20 |
Realized $64,000 cash |
|
|
|
|
|
|
|
|
from sale |
|
|
70,000 |
135,000 |
|
|
ACCOUNT Buildings |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
385,000 |
|
|
Apr. |
20 |
Acquired for cash |
|
240,000 |
|
625,000 |
|
|
ACCOUNT Accumulated Depreciation—Buildings |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
|
163,400 |
|
Dec. |
31 |
Depreciation for year |
|
|
11,200 |
|
174,600 |
|
ACCOUNT Equipment |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
194,300 |
|
|
|
26 |
Discarded, no salvage |
|
|
20,000 |
174,300 |
|
|
Aug. |
11 |
Purchased for cash |
|
44,600 |
|
218,900 |
|
|
ACCOUNT Accumulated Depreciation—Equipment |
ACCOUNT NO. |
|||||||
|
2008 |
|
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
|
67,800 |
|
|
|
26 |
Equipment discarded |
20,000 |
|
|
|
47,800 |
|
|
Dec. |
31 |
Depreciation for year |
|
|
12,600 |
|
60,400 |
|
|
ACCOUNT Bonds Payable ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
May |
1 |
Issued 20 year bonds |
|
115,000 |
|
115,000 |
|
ACCOUNT Common Stock, $1 Par |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
|
50,000 |
|
Dec. |
7 |
Issued 8,000 shares of common |
|
|
|
|
|
|
|
|
stock for $21 per share |
|
|
8,000 |
|
58,000 |
|
ACCOUNT Paid In Capital in Excess of Par—Common Stock |
ACCOUNT NO. |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
240,000 |
|
|
Dec. |
7 |
Issued 8,000 shares of common |
|
|
|
|
|
|
|
|
stock for $21 per share |
|
160,000 |
|
400,000 |
|
|
ACCOUNT Retained Earnings |
ACCOUNT NO. |
||||||
|
Date |
Item |
|
Debit |
Credit |
Balance |
||
|
Debit |
Credit |
||||||
|
2008 |
|
|
|
|
|
|
|
|
Jan. |
1 |
Balance |
|
|
|
1,103,500 |
|
|
Dec. |
31 |
Net loss |
11,700 |
|
|
1,091,800 |
|
|
|
31 |
Cash dividends |
14,000 |
|
|
1,077,800 |
|
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.