Financial Accounting: An Integrated Statements Approach, 2nd Edition

Chapter 13 Statement of Cash Flows 619

Dec. 31, 2007 Dec. 31, 2006
Liabilities and Stockholders’ Equity
Accounts payable (merchandise creditors) $ 97,000 $100,500
Income tax payable 7,100 6,400
Bonds payable 40,000 —
Common stock, $1 par 32,000 30,000
Paid-in capital in excess of par—common stock 200,000 120,000
Retained earnings 368,000 310,200

Total $744,100 $567,100

The noncurrent asset, the noncurrent liability, and the stockholders’ equity accounts for 2007 are
as follows:

LAND

Jan. 1 Balance 100,000 Apr. 20 Realized $31,000
cash from sale 25,000

Dec. 31 Balance 75,000

BUILDINGS

Jan. 1 Balance 140,000
Apr. 20 Acquired for cash 175,000

Dec. 31 Balance 315,000

ACCUMULATED DEPRECIATION—BUILDINGS

Jan. 1 Balance 58,300

Dec. 31 Depreciation for year 11,900

Dec. 31 Balance 70,200

EQUIPMENT

Jan. 1 Balance 210,400 Jan. 26 Discarded, no salvage 24,000
Aug. 11 Purchased for cash 39,200

Dec. 31 Balance 225,600

ACCUMULATED DEPRECIATION—EQUIPMENT

Jan. 26 Discarded, no salvage 24,000 Jan. 1 Balance 85,900
Dec. 31 Depreciation for year 19,500
Dec. 31 Balance 81,400

BONDS PAYABLE

May 1 Issued 20-year bonds 40,000

Dec. 31 Balance 40,000

COMMON STOCK

Jan. 1 Balance 30,000

Dec. 7 Issued 2,000 shares

of common stock for

$41 per share 2,000

Dec. 31 Balance 32,000