Accounting 2
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.
|
Rothlisberger Company Comparative Balance Sheets December 31 |
||||||
|
Assets |
|
2020 |
|
2019 |
||
|
Cash |
|
$81,000 |
|
|
$45,000 |
|
|
Accounts receivable |
|
41,000 |
|
|
62,000 |
|
|
Inventory |
|
151,450 |
|
|
142,000 |
|
|
Prepaid expenses |
|
15,280 |
|
|
21,000 |
|
|
Land |
|
105,000 |
|
|
130,000 |
|
|
Buildings |
|
200,000 |
|
|
200,000 |
|
|
Accumulated depreciation—buildings |
|
(60,000 |
) |
|
(40,000 |
) |
|
Equipment |
|
221,000 |
|
|
155,000 |
|
|
Accumulated depreciation—equipment |
|
(45,000 |
) |
|
(35,000 |
) |
|
Total |
|
$709,730 |
|
|
$680,000 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
|
Accounts payable |
|
$47,730 |
|
|
$40,000 |
|
|
Bonds payable |
|
260,000 |
|
|
300,000 |
|
|
Common stock, $1 par |
|
200,000 |
|
|
160,000 |
|
|
Retained earnings |
|
202,000 |
|
|
180,000 |
|
|
Total |
|
$709,730 |
|
|
$680,000 |
|
Additional information:
|
1. |
|
Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $5,720. |
|
2. |
|
Land was sold for cash at book value. |
|
3. |
|
Cash dividends of $20,000 were paid. |
|
4. |
|
Net income for 2020 was $42,000. |
|
5. |
|
Equipment was purchased for $88,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash. |
|
6. |
|
Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock. |
|
Rothlisberger Company Statement of Cash Flows
|
||
|
|
|
|
|
|
|
$
|
|
Adjustments to reconcile net income to |
|
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
$
|