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Kelley Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash KELLEY CORPORATION Comparative Balance Sheets December 31 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ 335,000 118,000 $ 216,000 101,000 546,000 863,000 329,000 (114,000) 624,000 1,077,000 378,000 (178,000) $ 1,277,000 $ 111,000 30,000 $ 1,078,000 $ 91,000 Income taxes payable Total current liabilities Equity Common stock, $2 par value Retained earnings Paid-in capital in excess of par value, common stock Total liabilities and equity 712,000 141,000 27,000 118,000 668,000 253,000 187,000 171,000 105,000 $1,277,000 $ 1,078,000 KELLEY CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold $ 2,185,000 1,324,000 861,000 Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 64,000 602,000 666,000 195,000 59,690 $ 135,310 Additional Information on Current Year Transactions a. Purchased equipment for $49,000 cash. b. Issued 22,000 shares of common stock for $5 cash per share. c. Declared and paid $69,310 in cash dividends. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method.

Kelley Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash KELLEY CORPORATION Comparative Balance Sheets December 31 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ 335,000 118,000 $ 216,000 101,000 546,000 863,000 329,000 (114,000) 624,000 1,077,000 378,000 (178,000) $ 1,277,000 $ 111,000 30,000 $ 1,078,000 $ 91,000 Income taxes payable Total current liabilities Equity Common stock, $2 par value Retained earnings Paid-in capital in excess of par value, common stock Total liabilities and equity 712,000 141,000 27,000 118,000 668,000 253,000 187,000 171,000 105,000 $1,277,000 $ 1,078,000 KELLEY CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold $ 2,185,000 1,324,000 861,000 Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 64,000 602,000 666,000 195,000 59,690 $ 135,310 Additional Information on Current Year Transactions a. Purchased equipment for $49,000 cash. b. Issued 22,000 shares of common stock for $5 cash per share. c. Declared and paid $69,310 in cash dividends. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kelley Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash KELLEY CORPORATION Comparative Balance Sheets December 31 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ 335,000 118,000 $ 216,000 101,000 546,000 863,000 329,000 (114,000) 624,000 1,077,000 378,000 (178,000) $ 1,277,000 $ 111,000 30,000 $ 1,078,000 $ 91,000 Income taxes payable Total current liabilities Equity Common stock, $2 par value Retained earnings Paid-in capital in excess of par value, common stock Total liabilities and equity 712,000 141,000 27,000 118,000 668,000 253,000 187,000 171,000 105,000 $1,277,000 $ 1,078,000 KELLEY CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold $ 2,185,000 1,324,000 861,000 Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 64,000 602,000 666,000 195,000 59,690 $ 135,310 Additional Information on Current Year Transactions a. Purchased equipment for $49,000 cash. b. Issued 22,000 shares of common stock for $5 cash per share. c. Declared and paid $69,310 in cash dividends. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method.
Transcribed Image Text:Kelley Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash KELLEY CORPORATION Comparative Balance Sheets December 31 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ 335,000 118,000 $ 216,000 101,000 546,000 863,000 329,000 (114,000) 624,000 1,077,000 378,000 (178,000) $ 1,277,000 $ 111,000 30,000 $ 1,078,000 $ 91,000 Income taxes payable Total current liabilities Equity Common stock, $2 par value Retained earnings Paid-in capital in excess of par value, common stock Total liabilities and equity 712,000 141,000 27,000 118,000 668,000 253,000 187,000 171,000 105,000 $1,277,000 $ 1,078,000 KELLEY CORPORATION Income Statement For Year Ended December 31 Sales Cost of goods sold $ 2,185,000 1,324,000 861,000 Gross profit Operating expenses Depreciation expense Other expenses Income before taxes Income taxes expense Net income $ 64,000 602,000 666,000 195,000 59,690 $ 135,310 Additional Information on Current Year Transactions a. Purchased equipment for $49,000 cash. b. Issued 22,000 shares of common stock for $5 cash per share. c. Declared and paid $69,310 in cash dividends. Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December 31, current year. Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct method. Indirect Method tab - Prepare the reconciliation to the indirect method.
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