Following are the trial balances for Gothic Corp. 12/31/13 12/31/14 dr Cash Acco
ID: 2542410 • Letter: F
Question
Following are the trial balances for Gothic Corp. 12/31/13 12/31/14 dr Cash Accounts Receivable Investment (Long-term) $ 85,500 241,000 16,000 177,000 $ 23,000 212,000 150,000 Accum. Depreciation -Bldg. Equipment Accum. Depreciation Equip. Patents Accounts Payable Income Taxes Payable Bonds Payable Common Stock Additional Paid In Capital $30,000 $34,000 90,000 70,000 11,000 12,000 40,000 37,500 123,000 27,000 100,000 130,000 50,000 44,000 138,000 25,000 114,000 150,000 60,000 94,000 Retained Earnings $ 515,000 515,000 627,000 627,000 During 2014 The company sold equipment in a transaction captured in the following J/E Cash Loss A/D - Equipment 10,000 2,000 8,000 Equipment The company recorded depreciation expense. (Analyze the change in ADI The company constructed an addition to the building The company amortized the patent cost with the following entry 20,000 Amortization Expense 2,500 Patent 2,500 The company issued common stock and recorded the following ent Cash 30,000 Common Stock Additional Paid In Capital 20,000 10,000 Dividends of $5,000 were declared and paid. - Net income for the year ended December 31, 2014, totalled $55,000. Complete the cash flow worksheet for Gothic for the year ended December 31, 2014.Explanation / Answer
GOTHIC CORP. Cash Flow Worksheet For the Year Ended December 31, 2014 Adjustments DEBITS Balance 12/31/2013 dr cr Balance 12/31/2014 Cash 23000 62500 85500 A/R 212000 29000 241000 Investment 0 16000 16000 Building 150000 27000 177000 Equipment 90000 20000 70000 Patents 40000 2500 37500 515000 627000 CREDITS A/D - Building 30000 4000 34000 A/D - Equipment 11000 8000 9000 12000 A/P 123000 15000 138000 Income Taxes Payable 27000 2000 25000 Bonds payable 100000 14000 114000 Common stock 130000 20000 150000 Additional Paid-in Capital 50000 10000 60000 R/E 44000 5000 55000 94000 515000 627000 Inflows/Adds Outflows/Deds Cash Flows from Operating Activities: Net income 55000 Depreciation expense 13000 Amortization expense 2500 Loss on sale of equipment 2000 Increase in A/R 29000 Increase in A/P 15000 Decrease in Income Taxes Payable 2000 Cash Flows from Investing Activities: Purchase of investments 16000 Addition to buildings 27000 Sale proceeds from equipment 10000 Cash Flows from Financing Activities: Issuance of common stock 30000 Issuance of bonds payable 14000 Cash dividends paid 5000 Totals 141500 79000 Net Increase in Cash 62500 Totals 141500 141500