ARDUOUS COMPANY
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Balance Sheet
Assets:
Cash 81 (21)28 109
Accounts receivable 194 (1) 4 190
Investment rev. receivable 4 (2) 2 6
1 ,211
Liabilities:
Problem 21–11
Shareholders’ Equity:
Common stock 410 (17)20 430
Paid-in capital—ex. of par 85 (17)10 95
Problem 21–11 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Income Statement
Revenues:
Sales revenue (1)410 410
Expenses:
Cost of goods sold (4)180 (180)
Net income (12)67 67
X Noncash investing and financing activity.
Problem 21–11 (continued)
Spreadsheet for the Statement of Cash Flows
(continued)
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Statement of Cash Flows
Operating activities:
Cash inflows:
From customers (1)414
Investing activities:
Sale of machine components (10)17
Financing activities:
Payment on lease liability (15) 7
Totals 1,313 1,313
Problem 21–11 (concluded)
ARDUOUS COMPANY
Statement of Cash Flows
For year ended December 31, 2018 ($ in millions)
Cash flows from operating activities:
Cash inflows:
From customers $414
From investment revenue 3
From sale of cash equivalents 2
Cash outflows:
Cash flows from investing activities:
Sale of machine components 17
Cash flows from financing activities:
Payment on lease liability (7)
Retirement of bonds payable (60)
Noncash investing and financing activities:
Acquired $82 million building by 15-year lease.
Acquired $46 million of land by issuing cash and a 15%, 4-year note as
follows:
Requirement 1
Retirement of common shares ($ in millions)
activities.
Net income closed to retained earnings
*The operating activities summarized by this transaction are identified
individually when we explain the changes in the components of net
income. But including the entry on the spreadsheet is helpful in partially
explaining change in retained earnings.
Declaration of a cash dividend
activities.
Declaration of a stock dividend
*This transaction does not represent a significant investing or financing
activity, but including the entry on the spreadsheet is helpful in partially
explaining changes in the balances of the two accounts affected.
Problem 21–12
Problem 21–12 (concluded)
Requirement 2
BRENNER-JUDE CORPORATION
Statement of Retained Earnings
FOR THE YEAR ENDED DECEMBER 31, 2018
($ in millions)
Balance at January 1 $ 90
Net income for the year 88
Deductions:
Amount Category
1. Cash collections from customers (direct method).
$145,0001 O
2. Payments for purchase of property, plant, and
1 Summary Entry
2Property, Plant, & Equipment
_________________________________________________________________
Problem 21–13
3 Summary Entry
Cash (sale of equipment) 31,000
Accumulated Depreciation
_________________________________________________________________
Problem 21–13 (concluded)
4 Summary Entry
Retained earnings (determined below) 15,000
Retained Earnings
_________________________________________________________________
91Beginning balance
28Net income
Dividends declared ?
____________
104Ending balance
5 Summary Entry
Bonds Payable
_________________________________________________________________
46Beginning balance
20Issued for P, P, & E
Bonds redeemed ?
____________
49Ending balance
SURMISE COMPANY
Spreadsheet for the Statement of Cash Flows
Dec.31 Changes Dec. 31
2017 Debits Credits 2018
Balance Sheet
Assets:
Cash 40 (16) 4 36
Accounts receivable 96 (5) 4 92
Less: Allowance (4) (3) 8 (12)
Liabilities:
Shareholders’ Equity:
Common stock 50 (14)10 60
X Noncash investing and financing activity.
Problem 21–14