Accounting HOMEWORK Help: Preparation of Balance Sheet? I'm SO STUCK!!! ;)?

Question

Worldly Corporation's balance sheet at the end of 2006 included the following items:

Current assets $1,105,000
Land 30,000
Building 1,120,000
Equipment 320,000
Accum. amort. - build. (130,000)
Accum. amort. - equip. (11,000)
Patents 40,000
Total $2,474,000
Current liabilities 1,020,000
Bonds payable 1,100,000
Common shares 180,000
Retained earnings 174,000
Total $2,474,000

The following inofmration is available for 2007:
1) Net income was $391,000.
2) Equipment (cost of $20,000 and accumulated amortization of $8,000) was sold for $10,000.
3) Amortization expense was $4,000 on the building and $9,000 on equipment.
4) Patent amortization was $3,000.
5) Current assets other than cash increased by $229,000. Current liabilities increased by $213,000.
6) An addition to the building was completed at a cost of $31,000.
7) A long-term investment in shares (no quoted market value) was purhcased for $20,500.
8) Bonds payable of $75,000 were issued.
9) Cash dividends

of $180,000 were declared and paid.

Instructions:
(a) Prepare a balance sheet at December 31, 2007.
(b) Prepare a statement of cash flows for the year ended December 31, 2007.

As I have said, bonus marks would be awarded for the BEST ANSWER! :)
- Nathe

Answer 1

Balance Sheet as at Dec 31, 2007

Current assets $1,580,500 (see below)
Long-term investment $20,500
Land 30,000
Building 1,151,000
Equipment 300,000
Accum. amort. - build. (134,000)
Accum. amort. - equip. (12,000)
Patents 40,000
Accum. amort. - patents (3,000)
Total $2,973,000
Current liabilities 1,233,000
Bonds payable 1,175,000
Common shares 180,000
Retained earnings 385,000
Total $2,973,000

Cash Flow Statement - Year ended Dec 31, 2007
Cash Flows From Op'g Activities
Profit before taxes 391,000
Adjustments for:
Loss on sale of equipment 2,000
Amortisation - bldg 4,000
Amortisation - equip. 9,000
Amortisation - patents 3,000
Sub-total 409,000
Changes in working capital
Increase in current assets (other than CCE) (229,000)
Increase in current liab. 213,000
Net cash from op'g activities 393,000

Cash Flows from Investing Activities
Proceeds from sale of equip. 10,000
Acquisition of bldg addition (31,000)
Purchase of L-T investment (20,500)
Net cash used in investing activities (41,500)

Cash Flows from Financing Activities
Proceeds from issue of bonds 75,000
Dividend paid (180,000)
Net cash used in financing activities (105,000)

Net increase in cash & cash equivalents 246,500

Note:
Current assets at Dec 31, 2006 $1,105,000
add increase in current assets other than CCE 229,000
add increase in CCE 246,500
Current assets at Dec 31, 2007 $1,580,500 (as above)

Answer 2

Assets = Liabilities + Stockholder's Equity

There is a balance sheet layout in your book, guaranteed

Just plug in the numbers.