b. $20,400
c. $19,700
- A 25 800 B 20 400 C 19 700 1 (52.72 KiB) Viewed 34 times
- A 25 800 B 20 400 C 19 700 2 (52.72 KiB) Viewed 34 times
a. $25,800 b. $20,400 c. $19,700
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a. $25,800 b. $20,400 c. $19,700
a. $25,800
b. $20,400
c. $19,700
Questions 8 through 12 Blue Corporation uses the direct method to prepare its statement of cash flows. Blue's trial balances at December 31, 2021 and 2020 are as follows: • Blue purchased $5,000 in equipment during 2021. • Blue allocates 1/3 of its depreciation expense to selling expenses and the remainder to general and administrative expenses. • There were no write-offs during 2021. Bad debt expense is included in general and administrative expenses. December 31 Year 2021 Year 2020 Debits Cash s 35,000 $ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant, equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 Totals s 756,700 S 976,100 December 31 Year 2021 Year 2020 S Credits Allowance for uncollectible accounts Accumulated depreciation Trade accounts payable Income taxes payable Deferred income taxes Bonds payable 8% Common stock Additional paid-in capital (APIC) Retained earnings Sales Totals 1,300 $ 1.100 16,500 15,000 25,000 17.500 21,000 27,100 5,300 4,600 45,000 20,000 50,000 40,000 9,100 7.500 44,700 64,600 538.800 778,700 756,700 S 976.100
b. $20,400
c. $19,700
Questions 8 through 12 Blue Corporation uses the direct method to prepare its statement of cash flows. Blue's trial balances at December 31, 2021 and 2020 are as follows: • Blue purchased $5,000 in equipment during 2021. • Blue allocates 1/3 of its depreciation expense to selling expenses and the remainder to general and administrative expenses. • There were no write-offs during 2021. Bad debt expense is included in general and administrative expenses. December 31 Year 2021 Year 2020 Debits Cash s 35,000 $ 32,000 Accounts receivable 33,000 30,000 Inventory 31,000 47,000 Property, plant, equipment 100,000 95,000 Unamortized bond discount 4,500 5,000 Cost of goods sold 250,000 380,000 Selling expenses 141,500 172,000 General and administrative expenses 137,000 151,300 Interest expense 4,300 2,600 Income tax expense 20,400 61,200 Totals s 756,700 S 976,100 December 31 Year 2021 Year 2020 S Credits Allowance for uncollectible accounts Accumulated depreciation Trade accounts payable Income taxes payable Deferred income taxes Bonds payable 8% Common stock Additional paid-in capital (APIC) Retained earnings Sales Totals 1,300 $ 1.100 16,500 15,000 25,000 17.500 21,000 27,100 5,300 4,600 45,000 20,000 50,000 40,000 9,100 7.500 44,700 64,600 538.800 778,700 756,700 S 976.100
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