Wickersham Brothers Inc.is developing its annual financial statements at December 31,2014.The statements are complete except for the statement of cash flows.The completed comparative balance sheets and income statements are summarized. Additional Data:
a.Bought equipment for cash,$50,000.
b.Paid $10,000 on long-term note payable.
c.Issued new shares of stock for $20,000 cash.
d.Cash dividends of $16,000 were declared and paid.
e.Accounts payable are exclusively related to inventory purchases on credit.
Prepare a schedule summarizing operating,investing,and financing cash flows using the T-account approach.

Question

Wickersham Brothers Inc.is developing its annual financial statements at December 31,2014.The statements are complete except for the statement of cash flows.The completed comparative balance sheets and income statements are summarized.   Additional Data:
a.Bought equipment for cash,$50,000.
b.Paid $10,000 on long-term note payable.
c.Issued new shares of stock for $20,000 cash.
d.Cash dividends of $16,000 were declared and paid.
e.Accounts payable are exclusively related to inventory purchases on credit.
Prepare a schedule summarizing operating,investing,and financing cash flows using the T-account approach.

Quizplus · Accepted Answer

The Answer of Wickersham Brothers Inc.is developing its annual financial statements at December 31,2014.The statements are complete except for the statement of cash flows.The completed comparative balance sheets and income statements are summarized.   Additional Data:
a.Bought equipment for cash,$50,000.
b.Paid $10,000 on long-term note payable.
c.Issued new shares of stock for $20,000 cash.
d.Cash dividends of $16,000 were declared and paid.
e.Accounts payable are exclusively related to inventory purchases on credit.
Prepare a schedule summarizing operating,investing,and financing cash flows using the T-account approach.