Solutions
16-22
16.9(Biddle Corporation; preparing a statement of cash flows.)
(amounts
in
US$)
a
.
C
a
s h
45
,
000
O
p
e
r
a
t
i
n
s
Retirement
Retirement
of
Operations (14) 60,500 Bonds Net of
Loss on Sale of
Income
Taxes
Equipment (4) 2,000 35,000 (7) Increase in
Depreciation (9) 10,000 Accounts
Amortization (10) 1,500 R
ecei
va
b
l
e
Increase in 20,000 (8)
Increase
in
Accounts Payable (11) 30,000 I
n
ve
n
t
ories
Deferred Income 5,000 (12)
Decrease
in
Taxes (13) 20,000 A
ccru
ed
Li
ab
ili
t
i
e
s
F i
n
a
n c i
g
0
Accounts
R
e c e i
va
b
l
e
—
N
e
t
I
n
v
e
n
t
o r i
es
L
a
n
d
√70,000 √ 110,000 √
100
,
000 (7) 35,000 (8)
20,000 (2) 20
,
00
0 (6)
42
,
500
16-23Solutions
16.9 a. continued.
Plant and Accumulated
E
q
u
i
p
m
e n
t
D
e
p
r
e
c i
a
t
i
on
P
a
t
e n
t
s
Deferred I
nc
ome
A
cc
o
u n
t
s P
ay
a
b
l
e
A
c cr u
ed
L i
ab
i
li
t
i
e
s
T
ax
es
√
Add
i
t
ion
a
l
L
o
n
g
–
T
e
r
m
B
o n
d
s
C
o
m
m
on S
t
o c k
P
a
i
d
–
I
n
C
a
p
i
t
a
l
R
e
t
a
i
n
ed
E
a
r n
i n
g
s
101,000 √
Solutions16-24
16.9 continued.
b.BIDDLE CORPORATION Statement of
Cash Flows
For the Year Ended December, 2014
Operations:
Net I
nc
ome …………………………………………….. $
Cash, December 31, 2014…………………………….. $
5
0
,00
0
Supplementary Information
During 2014, Biddle Corporation issued common stock with a
market value of $20,000 in the acquisition of land.
16-25Solutions
16.10 (Plainview Corporation; preparing a statement of cash flows.)
(amounts
in
US$)
a
.
C
a
s h
√
I
n
v
es
t
i
n
g
Fi
n
a
nci
n
g
Reissue of Treasury 130,000 (2) Dividends
Stock (3) 6,000 145,000 (17) Payment of
Note
Solutions16-26
16.10 a. continued.
Marketable
Accounts
S
e
c
u
r i t i e
s
R
e
c
e
i
v ab l e
— N
e
t
I n
v
e
n to
r i
e
s
P r
e
p
a y
m
e
n t
s
B
o
n d
S i
nk
i
n
g
F
u
n d
I n
v
e
s
t
m
e
n t
i n
S
u
b s
i d i ary
Plant and
Not
es
E q
u i p
m
e
n t
—
N
e
t
A
cc
o
u
n t
s
Pa y ab l e
Pa y ab l e
—
C
u
r
r
e
n t
√
A
ccr
u
e
d
Pa y ab l e
s
I n
c
o
m
e
Ta x
e
s
Pa y ab l e
D e
f
e
r
r
e
d
I n
c
o
m
e
Ta x
e
s
√
(18) 1,500 66,500 (19) (20)
500
16,500 √ 97,500 √ 127,900
√
6% Mo
r t
g a
g
e
B
o
n d
s
8% D e
b
e
n t
u
r
e
s
C
o
mm
o
n
S to
c
k
310,000 √ -0- √ 950,000
√
(21) 310,000 125,000 (22)
83,500(4)*
Net I
nc
ome
………………………………………………
$ 236,580
Loss from Fire
…………………………………………
35,000
Equity in Loss of
Subsidiary……………………..
Loss on Retirement of Bo
…………………….
Depreciation ……………………………………..
Subsidiary……………………..
Loss on Retirement of Bo
…………………….
Depreciation ……………………………………..
17,920
…….
Gain on Sale of Marketable Securities
………
(17,000)
Deferred Income
Taxes
……………………………..
(500)
Decrease in Accounts
Receivable—Net
………
59,000
Increase in Accounts
Payable…………………….
24,800
Increase in Income Taxes Payable
……………..
66,500
Increase in Inventories
(131,100)
Increase in
Pr
epaym
en
t
s
………………………….. (1,400)
Decrease in Accrued Payables
…………………..
(
1
, 50
0
$
Building
Sol
d
…………………………………………..
Bond Sinking Funds Used
………………………..
Acquisition of Marketable
Securities…………
0)
Issue of
………………………………….
s
……..
0)
Retirement of Bonds
………………………………..
0)
Net Change in Cash
…………………………………….
$
(23,200)
Cash, January 1, 2014
…………………………………
Cash, December 31,
$
…………………………………………..
Bond Sinking Funds Used
………………………..
Acquisition of Marketable
Securities…………
0)
Issue of
………………………………….
s
……..
0)
Retirement of Bonds
………………………………..
0)
Net Change in Cash
…………………………………….
$
(23,200)
Cash, January 1, 2014
…………………………………
Cash, December 31,
$
4,000
2014……………………………..
14
2
, 10
0
-0– √125,000 √ 1,033,500
√
Unrealized
Holding
Additional Gain on
Marketable
P a i d
– I n
C a p i t
a l
S
e
c
u
r i t i e
s
Ret
a i
ne
d
E ar
n i
n
g
s
T
r
e
a
s
u
r
y
S
to
c
k
*(4) 83,500 = 1,033,500 –
950,000
√ 43,500 *(4) 16,700 = 67,700 –
51,000
9,000 (3) *(4)100,200 = 83,500 +
√
34,500
16-2716.10 continued.
b. PLAINVIEW
CORPORATION
For the Year Ended December, 2014
Operations:
Solutions16-28
16.11 (Airlines Corporation; preparing and interpreting the statement
)
I
n
v
es
t
i
g
g
249
Property, Plant, and Accumulated
P r
e
p
a
y
m
e n
t
s
E
q
u
i
p
m
e n
t
3,805 √
16-29Solutions16.11 a. continued.
Shor
t-
Ter
m
O
t
h
e
r
A
ss
e
t
s
A
cc
o
u n
t
s P
ay
a
b
l
e
B
o rr
o
w i n
g
√610540 √121 √
40 (10)56 (11) 325 (12)
√570596 √446 √
Current Portion Advances from Other Current
L
o
n
g
–
T
e
r
m
D
e
b
t
C
u
s
t
o
m
e r
s
L i
ab
i
l
i
t
i
e
s
110 √619 √1,485
√
√
Deferred Tax Other Noncurrent
L
o
n
g
–
T
e
r
m
D
e
b
t
L i
ab
i
l
i
t
y
L i
ab
i
l
i
t
i
e
s
√
Unrealized
H
ol
d
in
g
Gain on
M
a
rk
etab
l
e
C
o
m
m
on S
t
o c k
S
e c u r i
t
i
e
s
R
e
t
a
i
n
ed
E
a
r n
i n
g
s
Additional Paid-In
C
a
p
i
t
a
l
T r
e
a
s u r
y
S
t
o c k
Solutions16-30
16.11 a. continued.
a. T-account work sheet for 2014.
C
a
s h
√465
O
p
e
r
a
t
n
s
(1) 101 286 (4)
(3) 560 25 (7)
M
a
r k
e
t
ab
l
e
S e c u r i
t
i
e
s
A
c c
o
u n
t
s
R
e c e i
v
a
b
l
e
I
n
v e
n
t
o
r
i
es
Property, Plant, and Accumulated
P r
e
p
a
y
m
e n
t
s
E
q
u
i
p
m
e n
t
D
e
p
r
e
c i
a
t
i
on
√
16-31Solutions
Shor
t-
Ter
m
O
t
h
e
r
A
ss
e
t
s
A
cc
o
u n
t
s P
ay
a
b
l
e
B
o rr
o
w i n
g
√570 596 √446
√
(10) 35 (11) 44 1
(12)
√
Current Portion Advances from Other
C
urr
e
n
t
L
o
n
g
–
T
e
r
m
D
e
b
t
C
u
s
t
o
m
e r
s
L i
ab
i
l
i
t
i
e
s
√
Deferred Tax Other
N
o
ncurr
e
n
t
L
o
n
g
–
T
e
r
m
D
e
b
t
L i
ab
i
l
i
t
y
L i
ab
i
l
i
t
i
e
s
√
Unrealized H
ol
d
in
g
Additional
P
a
i
d-I
n
Gain on
M
a
rk
etab
l
e
C
o
m
m
on S
t
o c k
C
a
p
i
t
a
l
S
e c u r i
t
i
e
s
√
R
e
t
a
i
n
ed
E
a
r n
i n
g
s
T r
e
a
s u r
y
S
t
o c k
1,512 √ √
112
101 (1)
1,613 √ √
112
Solutions
16-22
16.9(Biddle Corporation; preparing a statement of cash flows.)
(amounts
in
US$)
a
.
C
a
s h
45
,
000
O
p
e
r
a
t
i
n
s
of
Operations (14) 60,500 Bonds Net of
Loss on Sale of
Income
Taxes
Equipment (4) 2,000 35,000 (7) Increase in
Depreciation (9) 10,000 Accounts
Amortization (10) 1,500 R
ecei
va
b
l
e
Increase in 20,000 (8)
Increase
in
Accounts Payable (11) 30,000 I
n
ve
n
t
ories
Deferred Income 5,000 (12)
Decrease
in
Taxes (13) 20,000 A
ccru
ed
Li
ab
ili
t
i
e
s
F i
n
a
n c i
g
0
Accounts
R
e c e i
va
b
l
e
—
N
e
t
I
n
v
e
n
t
o r i
es
L
a
n
d
√70,000 √ 110,000 √
100
,
000 (7) 35,000 (8)
20,000 (2) 20
,
00
0 (6)
42
,
500
16-23Solutions
16.9 a. continued.
Plant and Accumulated
E
q
u
i
p
m
e n
t
D
e
p
r
e
c i
a
t
i
on
P
a
t
e n
t
s
Deferred I
nc
ome
A
cc
o
u n
t
s P
ay
a
b
l
e
A
c cr u
ed
L i
ab
i
li
t
i
e
s
T
ax
es
√
Add
i
t
ion
a
l
L
o
n
g
–
T
e
r
m
B
o n
d
s
C
o
m
m
on S
t
o c k
P
a
i
d
–
I
n
C
a
p
i
t
a
l
R
e
t
a
i
n
ed
E
a
r n
i n
g
s
101,000 √
Solutions16-24
16.9 continued.
b.BIDDLE CORPORATION Statement of
Cash Flows
For the Year Ended December, 2014
Operations:
Net I
nc
ome …………………………………………….. $
Cash, December 31, 2014…………………………….. $
5
0
,00
0
Supplementary Information
During 2014, Biddle Corporation issued common stock with a
market value of $20,000 in the acquisition of land.
16-25Solutions
16.10 (Plainview Corporation; preparing a statement of cash flows.)
(amounts
in
US$)
a
.
C
a
s h
√
I
n
v
es
t
i
n
g
Fi
n
a
nci
n
g
Reissue of Treasury 130,000 (2) Dividends
Stock (3) 6,000 145,000 (17) Payment of
Note
Solutions16-26
16.10 a. continued.
Marketable
Accounts
S
e
c
u
r i t i e
s
R
e
c
e
i
v ab l e
— N
e
t
I n
v
e
n to
r i
e
s
P r
e
p
a y
m
e
n t
s
B
o
n d
S i
nk
i
n
g
F
u
n d
I n
v
e
s
t
m
e
n t
i n
S
u
b s
i d i ary
Plant and
Not
es
E q
u i p
m
e
n t
—
N
e
t
A
cc
o
u
n t
s
Pa y ab l e
Pa y ab l e
—
C
u
r
r
e
n t
√
A
ccr
u
e
d
Pa y ab l e
s
I n
c
o
m
e
Ta x
e
s
Pa y ab l e
D e
f
e
r
r
e
d
I n
c
o
m
e
Ta x
e
s
√
(18) 1,500 66,500 (19) (20)
500
16,500 √ 97,500 √ 127,900
√
6% Mo
r t
g a
g
e
B
o
n d
s
8% D e
b
e
n t
u
r
e
s
C
o
mm
o
n
S to
c
k
310,000 √ -0- √ 950,000
√
(21) 310,000 125,000 (22)
83,500(4)*
Net I
nc
ome
………………………………………………
$ 236,580
Loss from Fire
…………………………………………
35,000
Equity in Loss of
17,920
…….
Gain on Sale of Marketable Securities
………
(17,000)
Deferred Income
Taxes
……………………………..
(500)
Decrease in Accounts
Receivable—Net
………
59,000
Increase in Accounts
Payable…………………….
24,800
Increase in Income Taxes Payable
……………..
66,500
Increase in Inventories
(131,100)
Increase in
Pr
epaym
en
t
s
………………………….. (1,400)
Decrease in Accrued Payables
…………………..
(
1
, 50
0
$
Building
Sol
d
4,000
2014……………………………..
14
2
, 10
0
-0– √125,000 √ 1,033,500
√
Unrealized
Holding
Additional Gain on
Marketable
P a i d
– I n
C a p i t
a l
S
e
c
u
r i t i e
s
Ret
a i
ne
d
E ar
n i
n
g
s
T
r
e
a
s
u
r
y
S
to
c
k
*(4) 83,500 = 1,033,500 –
950,000
√ 43,500 *(4) 16,700 = 67,700 –
51,000
9,000 (3) *(4)100,200 = 83,500 +
√
34,500
16-2716.10 continued.
b. PLAINVIEW
CORPORATION
For the Year Ended December, 2014
Operations:
Solutions16-28
16.11 (Airlines Corporation; preparing and interpreting the statement
)
I
n
v
es
t
i
g
g
249
Property, Plant, and Accumulated
P r
e
p
a
y
m
e n
t
s
E
q
u
i
p
m
e n
t
3,805 √
16-29Solutions16.11 a. continued.
Shor
t-
Ter
m
O
t
h
e
r
A
ss
e
t
s
A
cc
o
u n
t
s P
ay
a
b
l
e
B
o rr
o
w i n
g
√610540 √121 √
40 (10)56 (11) 325 (12)
√570596 √446 √
Current Portion Advances from Other Current
L
o
n
g
–
T
e
r
m
D
e
b
t
C
u
s
t
o
m
e r
s
L i
ab
i
l
i
t
i
e
s
110 √619 √1,485
√
√
Deferred Tax Other Noncurrent
L
o
n
g
–
T
e
r
m
D
e
b
t
L i
ab
i
l
i
t
y
L i
ab
i
l
i
t
i
e
s
√
Unrealized
H
ol
d
in
g
Gain on
M
a
rk
etab
l
e
C
o
m
m
on S
t
o c k
S
e c u r i
t
i
e
s
R
e
t
a
i
n
ed
E
a
r n
i n
g
s
Additional Paid-In
C
a
p
i
t
a
l
T r
e
a
s u r
y
S
t
o c k
Solutions16-30
16.11 a. continued.
a. T-account work sheet for 2014.
C
a
s h
√465
O
p
e
r
a
t
n
s
(1) 101 286 (4)
(3) 560 25 (7)
M
a
r k
e
t
ab
l
e
S e c u r i
t
i
e
s
A
c c
o
u n
t
s
R
e c e i
v
a
b
l
e
I
n
v e
n
t
o
r
i
es
Property, Plant, and Accumulated
P r
e
p
a
y
m
e n
t
s
E
q
u
i
p
m
e n
t
D
e
p
r
e
c i
a
t
i
on
√
16-31Solutions
Shor
t-
Ter
m
O
t
h
e
r
A
ss
e
t
s
A
cc
o
u n
t
s P
ay
a
b
l
e
B
o rr
o
w i n
g
√570 596 √446
√
(10) 35 (11) 44 1
(12)
√
Current Portion Advances from Other
C
urr
e
n
t
L
o
n
g
–
T
e
r
m
D
e
b
t
C
u
s
t
o
m
e r
s
L i
ab
i
l
i
t
i
e
s
√
Deferred Tax Other
N
o
ncurr
e
n
t
L
o
n
g
–
T
e
r
m
D
e
b
t
L i
ab
i
l
i
t
y
L i
ab
i
l
i
t
i
e
s
√
Unrealized H
ol
d
in
g
Additional
P
a
i
d-I
n
Gain on
M
a
rk
etab
l
e
C
o
m
m
on S
t
o c k
C
a
p
i
t
a
l
S
e c u r i
t
i
e
s
√
R
e
t
a
i
n
ed
E
a
r n
i n
g
s
T r
e
a
s u r
y
S
t
o c k
1,512 √ √
112
101 (1)
1,613 √ √
112