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Name: Date: Instructor: Course: Accounting Principles Primer On Using Excel in Accounting

This document provides a comparative balance sheet for Erisa Magambo Company for the years 2012 and 2011. It also provides additional financial information for 2012, including net income, cash dividends paid, bonds redeemed, common stock issued, and depreciation expense. The instructions are to prepare a worksheet for a statement of cash flows for 2012 using the indirect method, and cross-referencing reconciling items from the balance sheet to the statement of cash flows.

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Hernando Maulana
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244 views2 pages

Name: Date: Instructor: Course: Accounting Principles Primer On Using Excel in Accounting

This document provides a comparative balance sheet for Erisa Magambo Company for the years 2012 and 2011. It also provides additional financial information for 2012, including net income, cash dividends paid, bonds redeemed, common stock issued, and depreciation expense. The instructions are to prepare a worksheet for a statement of cash flows for 2012 using the indirect method, and cross-referencing reconciling items from the balance sheet to the statement of cash flows.

Uploaded by

Hernando Maulana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Name: Date:

Instructor: Course:
Accounting Principles, Tenth Edition by Weygandt, Kieso, and Kimmel
Primer on Using Excel in Accounting by Rex A Schildhouse
E17-10, Prepare a worksheet.
Comparative balance sheets for Erisa Magambo Company are presented below.
ERISA MAGAMBO COMPANY
Comparative Balance Sheets
December 31
Assets 2012 2011
Cash $63,000 $22,000 41,000
Accounts receivable 85,000 76,000 9,000
Inventory 180,000 189,000 9000
Land 75,000 100,000 25,000
Equipment 260,000 200,000 60,000
Accumulated depreciation—equipment (66,000) (42,000) 24,000
Total $597,000 $545,000
Liabilities and Stockholders’ Equity
Accounts payable $34,000 $47,000 $13,000
Bonds payable 150,000 200,000 50,000
Common stock ($1 par) 214,000 164,000 50,000
Retained earnings 199,000 134,000 65,000
Total $597,000 $545,000

Additional information:
1. Net income for 2012 was $125,000
2. Cash dividends of $60,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000
4. Common stock was issued for $50,000 cash.
5. Depreciation expense was $24,000
6. Sales for the year were $978,000

Instructions:
Prepare a worksheet for a statement of cash flows for 2012 using the indirect method. Enter the reconciling items directly on the worksheet,
using letters to cross-reference each entry.
ERISA MAGAMBO COMPANY
Worksheet
Statement of Cash Flows
For the Year Ended December 31, 2012
Balance Sheet Accounts Reconciling Items
Debits Balance 12/31/11 Ref. Debit Credit Ref. Balance 12/31/12
Cash 22,000 41,000 63,000
Accounts receivable 76,000 A 9,000 85,000
Inventory 189,000 9,000 B 180,000
Land 100,000 25,000 C 75,000
Equipment 200,000 D 60,000 260,000
Total 587,000 Formula
Credits
Accumulated depreciation—equipment 42,000 24,000 66,000
Accounts payable 47,000 13,000 34,000
Bonds payable 200,000 50,000 150,000
Common stock ($1 par) 164,000 50,000 214,000
Retained earnings 134,000 65,000 199,000
Total 587,000 Formula

Statement of Cash Flow Effects Debit Credit saldo cash


Operating activities
Net Income 125,000
Increase in AR 9,000 A
Decrease in Inventory B 9,000

562065083.xlsx, Exercise E17-10, Page 1 of 2 Page(s), 12/05/202112:35:37


Name: Date:
Instructor: Course:
Decrease in AP 13,000
Depreciation Expense 24,000
Investing activities
Sale of Land C 25,000
Purchase of Equipment 60,000 D
Financing activities
Payment of dividen 60,000
Redemption of Bonds Payable 50,000
Issuance of Common Stock 50,000
Totals 233,000 192,000
Increase in cash 41,000
Totals

562065083.xlsx, Exercise E17-10, Page 2 of 2 Page(s), 12/05/202112:35:37

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