A. $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
B. The only changes affecting retained earnings are net income and cash dividends paid.
C. New equipment is acquired for $58,600 cash.
D. Received cash for the sale of equipment that had cost $49,600, yielding a $2,100 gain.
E. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
F. All purchases and sales of inventory are on credit.
The following financial statements and additional information are reported:
KIBAN INCORPORATED Comparative Balance Sheets 2021
2020
Inventory Prepaid expenses Total current assets Accumulated depreciation-Equipment Total assets Liabilities and Equity
$25,000 $9,000 $348,200 $297,100 $15,360
Income taxes payable Total current liabilities Long-term Equity stock, $5 par value Retained earnings Total liabilities and equity
AMCORPORATED Statement of Cash Flows (Indirect Method) for Year Ended June 30, 2021
KIBAN INCORPORATED Income Statement for Year Ended June 30, 2021
Cost of goods sold Gross profit Operating expenses (excluding depreciation) Other gains (losses) sale of equipment Income taxes expense Net income
$8,000 $2,100 $14,500 $23,200 $(3,100) $145,210 $47,500 $(58,600) $(101,510) $(11,100) $(30,000) $(171,310) $84,000 $117,310 $16,800
