Question : Question Exercise 7-14 Part b (b) Prepare the income statement, balance sheet, and : 1162919

Question

Exercise 7-14 Part b

(b)

Prepare the income statement, balance sheet, and statement ofcash flows for 2012 and 2013. (Leave no cells blank – becertain to enter “0” wherever required. Amounts to be deductedshould be indicated with minus sign. Be sure to list the assets andliabilities in order of their liquidity. Outflow should beindicated by minus sign.Omit the “$” sign in yourresponse.)

 

Polledo Company

Income Statements

2012 and 2013

 

2012

2013

  (Click to select)Lease revenueSalariesexpenseService revenueSales revenueInterest expense

$   

$   

  (Click to select)Service revenueLeaserevenueInterest expenseSalaries expenseSales revenue

 

 

 

 

 

  (Click to select)Net incomeNet loss

$   

$    

 

 

 

 

 
 
 

 

Polledo Company

Balance Sheets

2012 and 2013

 

2012

2013

  Assets

 

 

     (Click to select)RetainedearningsCashLandBonds payableCommon stock

$    

$    

     (Click to select)LandCashRetainedearningsCommon stockBonds payable

 

 

 

 

 

  Total Assets

$    

$    

 

 

 

  Liabilities

 

 

     (Click to select)BondspayableLandCashRetained earningsCommon stock

$    

$    

 

 

 

Stockholders’ Equity

 

 

     (Click to select)CashBondspayableCommon stockLandSalaries expense

 

 

     (Click to select)CashBondspayableLandRetained earningsSalaries expense

 

 

 

 

 

Total Stockholders’ Equity

 

 

 

 

 

  Total Liab. and Stockholders’Equity

$    

$    

 

 

 

 

 
 
 

 

Polledo Company

Statements of Cash Flows

2012 and 2013

 

2012

2013

  Cash Flows From Operating Activities:

 

 

       (Click toselect)Inflow from revenueInflow from bond issueOutflow forinventoryOutflow for interestOutflow to purchase land

$    

$     

       (Click toselect)Outflow to purchase landInflow from bond issueOutflow forinterestInflow from revenueOutflow for inventory

 

 

 

 

 

  Net Cash Flow from Operating Act.

 

 

  Cash Flows From Investing Activities:

 

 

       (Click toselect)Outflow to purchase landOutflow for inventoryInflow fromrevenueOutflow for interestInflow from bond issue

 

 

  Cash Flows From Financing Activities:

 

 

       (Click toselect)Inflow from bond issueOutflow to purchase landOutflow forinventoryOutflow for interestInflow from revenue

 

 

 

 

 

  Net Change in Cash

 

 

  (Click to select)Outflow to purchase landInflowfrom bond issueOutflow for inventoryLess: Beginning cashbalanceAdd: Beginning cash balance

 

 

 

 

 

  Ending Cash Balance

$    

$    

 

 

 

 

 
 
 

 

Polledo Company issued $420,000 of 20-year, 9 percent bonds onJanuary 1, 2012. The bonds were issued at face value. Interest ispayable in cash on December 31 of each year. Polledo immediatelyinvested the proceeds from the bond issue in land. The land wasleased for an annual $56,500 of cash revenue, which was collectedon December 31 of each year, beginning December 31, 2012.