Mr.Wizard's Magic Shoppe had the following condensed balance sheet at the end of operation for 2010:
During 2011,the following occurred
a.Mr.Wizard's sold some of its investments for $13,000 which resulted in a gain of $300 after taxes.The gain (net of taxes)has been included in the company's 2011 net income.
b.Additional land for a plant expansion was purchased for $25,000.
c.Bonds payable were paid in the amount of $10,000.
d.An additional $35,000 in capital stock was issued.
e.Dividends of $15,000 were paid to stockholders.
f.Net income for 2011 was $48,000 after allowing for $15,000 in depreciation.
g.A second parcel of land was purchased through the issuance of $10,000 in bonds,and $5,000 in long-term notes payable.
Required:
a.Prepare a statement of cash flows for the year ended 12/31/2011.(check figure:
ending cash balance = $72,500)
b.Prepare a condensed balance sheet for Mr.Wizard's at December 31,2011.

Question

Mr.Wizard's Magic Shoppe had the following condensed balance sheet at the end of operation for 2010:
  During 2011,the following occurred
a.Mr.Wizard's sold some of its investments for $13,000 which resulted in a gain of $300 after taxes.The gain (net of taxes)has been included in the company's 2011 net income.
b.Additional land for a plant expansion was purchased for $25,000.
c.Bonds payable were paid in the amount of $10,000.
d.An additional $35,000 in capital stock was issued.
e.Dividends of $15,000 were paid to stockholders.
f.Net income for 2011 was $48,000 after allowing for $15,000 in depreciation.
g.A second parcel of land was purchased through the issuance of $10,000 in bonds,and $5,000 in long-term notes payable.
Required:
a.Prepare a statement of cash flows for the year ended 12/31/2011.(check figure:
 ending cash balance = $72,500)
b.Prepare a condensed balance sheet for Mr.Wizard's at December 31,2011.

Quizplus · Accepted Answer

The Answer of Mr.Wizard's Magic Shoppe had the following condensed balance sheet at the end of operation for 2010:
  During 2011,the following occurred
a.Mr.Wizard's sold some of its investments for $13,000 which resulted in a gain of $300 after taxes.The gain (net of taxes)has been included in the company's 2011 net income.
b.Additional land for a plant expansion was purchased for $25,000.
c.Bonds payable were paid in the amount of $10,000.
d.An additional $35,000 in capital stock was issued.
e.Dividends of $15,000 were paid to stockholders.
f.Net income for 2011 was $48,000 after allowing for $15,000 in depreciation.
g.A second parcel of land was purchased through the issuance of $10,000 in bonds,and $5,000 in long-term notes payable.
Required:
a.Prepare a statement of cash flows for the year ended 12/31/2011.(check figure:
 ending cash balance = $72,500)
b.Prepare a condensed balance sheet for Mr.Wizard's at December 31,2011.

MrWizard's Magic Shoppe Had the Following Condensed Balance Sheet at the End