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Better Boat Company Comparative Balance Sheet December 31, 2025 and 2024 2025 Assets Current Assets: Cash $2,293,590$2,190 Short-term Investments, net 25,000 0 Accounts Receivable, net Merchandise Inventory 1,2006,200 Office Supplies Prepaid Rent Property, Plant, and Equipment: Land Building Canoes 1,3000 Office Furniture and Equipment 13007003,600 Accumulated Depreciation-PP\&E \begin{tabular}{rrr} & (37,490) & (1,020) \\ \hline$4,451,610 & $234,550 \\ \hline \hline \end{tabular} Liabilities Current Liabilities: Accounts Payable Utilities Payable \begin{tabular}{ccr} $ & 5,620$ & 2,630 \\ \hline 790 & 240 \end{tabular} Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Interest Payable Unearned Revenue Long-Term Liabilities: Notes Payable \begin{tabular}{rr} 9,600 & 9,600 \\ 760,000 & 0 \\ 1,500,000 & 0 \\ (2,880) & 0 \\ \hline 2,292,450 & 14,390 \end{tabular} Stockholders' Equity Paid-In Capital: 1. The income statement for 2025 included the following items: a. Net income, $471,000 b. Depreciation expense for the year, $36,470. c. Amortization on the bonds payable, $320. 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP\&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $1,500,000, receiving cash of $1,496,800. 4. The company distributed 9,000 shares of common stock in a stock dividend when the market value was $13.00 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2025 is considered a financing activity because it does not relate to operations. Statement of Cash Flows Year Ended December 31, 2025 Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: Depreciation Expense Amortization Expense Increase in Short-term Investments Decrease in Accounts Receivable Increase in Merchandise Inventory Decrease in Office Supplies Decrease in Prepaid Rent Increase in Accounts Payable Increase in Utilities Payable Increase in Telephone Payable Increase in Wages Payable Increase in Interest Payable Increase in Unearned Revenue Net Cash Provided by (Used for) Operating Activities Cash Flows From Investing Activities: Cash Payment for Acquisition of Plant Assets Increase in Utilities Payable Increase in Telephone Payable Increase in Wages Payable Increase in Interest Payable Increase in Unearned Revenue Net Cash Provided by (Used for) Operating Activities Cash Flows From Investing Activities: Cash Payment for Acquisition of Plant Assets Net Cash Provided by (Used for) Investing Activities Cash Flows From Financing Activities: Cash Receipt from Issuance of Common Stock Cash Receipt from Issuance of Notes Payable Cash Receipt from Issuance of Mortgage Payable Cash Receipt from Issuance of Bonds Payable Cash Payment of Dividends Net Cash Provided by (Used for) Financing Activities Net Increase (Decrease) in Cash Cash Balance, Dec. 31, 2024 Cash Balance, Dec. 31, 2025 Non-cash Investing and Financing Activities: Acquisition of land by issuing preferred stock

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