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    PE 2-14 Expanded Accounting Equation
    Use the expanded equation to compute the missing quantity.

    Assets Liabilities Capital Stock Retained Earnings
    Case A $23,000 $11,000 A $ 4,500
    Case B 17,500 B $ 4,500 3,600
    Case C C 14,000 11,000 27,000
    Case D 45,000 29,000 18,000 D

    E-25 Balance Sheet Preparation
    From the following data, prepare a classified balance sheet for Taylorsville Construction
    Company at December 31, 2009.
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 74,300
    Accounts receivable . . . . . . . . . . . . . . . . . . . . . 113,500
    Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,000
    Owners' equity, 1/1/09 . . . . . . . . . . . . . . . . . . 314,300
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,600
    Distributions to owners during 2009 . . . . . . . . 48,100
    Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250
    Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
    Mortgage payable . . . . . . . . . . . . . . . . . . . . . . 423,400
    Net income for 2009 . . . . . . . . . . . . . . . . . . . . 109,450
    Owners' equity, 12/31/09 . . . . . . . . . . . . . . . . ?

    E 2-29 Retained Earnings Computations
    During 2009, Edgemont Corporation had revenues of $230,000 and expenses, including
    income taxes, of $190,000. On December 31, 2008, Edgemont had assets of $350,000,
    liabilities of $80,000, and capital stock of $210,000. Edgemont paid a cash dividend of
    $25,000 in 2009. No additional stock was issued. Compute the retained earnings on
    December 31, 2008, and 2009.

    E 2-32 Cash Flow Computations
    From the following selected compute:
    1. Net cash flow provided (used) by operating activities.
    2. Net cash flow provided (used) by investing activities.
    3. Net cash flow provided (used) by financing activities.
    4. Net increase (decrease) in cash during the year.
    5. The cash balance at the end of the year.

    Cash receipts from:
    Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $270,000
    Investments by owners . . . . . . . . . . . . . . . . . . . . . . . 54,000
    Sale of building . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
    Proceeds from bank loan . . . . . . . . . . . . . . . . . . . . . 60,000
    Cash payments for:
    Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,000
    Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
    Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000
    Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,000
    Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,000
    Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
    Repayment of principal on loan . . . . . . . . . . . . . . . . . 40,000
    Purchase of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,000
    Cash balance at beginning of year . . . . . . . . . . . . . . . . $386,000

    E2-33 Cash Flow Classifications
    For each of the following items, indicate whether it would be classified and reported under
    the operating activities (OA), investing activities (IA), or financing activities (FA) section of a
    statement of cash flows:

    a. Cash receipts from selling merchandise
    b. Cash payments for wages and salaries
    c. Cash proceeds from sale of stock
    d. Cash purchase of equipment
    e. Cash dividends paid
    f. Cash received from bank loan
    g. Cash payments for inventory
    h. Cash receipts from services rendered
    i. Cash payments for taxes
    j. Cash proceeds from sale of property no longer needed as expansion site

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    https://brainmass.com/economics/utility/accounting-problems-185379

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    PE 2-14 Expanded Accounting Equation
    Use the expanded equation to compute the missing quantity.

    Assets Liabilities Capital Stock Retained Earnings
    Case A $23,000 $11,000 A $ 4,500
    Case B 17,500 B $ 4,500 3,600
    Case C C 14,000 11,000 27,000
    Case D 45,000 29,000 18,000 D

    Assets = Liabilities + Capital Stock + Retained Earnings

    Case A A = 23,000 - 11,000 - 4,500 = 7,500
    Case B B = 17,500 - 4,500 - 3,600 = 9,400
    Case C C = 14,000 + 11,000 + 27,000 = 52,000
    Case D D = 45,000 - 29,000 - 18,000 = 2,000

    E-25 Balance Sheet Preparation
    From the following data, prepare a classified balance sheet for Taylorsville Construction
    Company at December 31, 2009.
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 74,300
    Accounts receivable . . . . . . . . . . . . . . . . . . . . . 113,500
    Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,000
    Owners' equity, 1/1/09 . . . . . . . . . . . . . . . . . . 314,300
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,600
    Distributions to owners during 2009 . . . . . . . . 48,100
    Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,250
    Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000
    Mortgage payable . . . . . . . . . . . . . . . . . . . . . . 423,400
    Net income for 2009 . . . . . . . . . . . . . . . . . . . . 109,450
    Owners' equity, 12/31/09 . . . . . . . . . . . . . . . . ?

    Taylorsville Construction
    Statement of Retained Earnings
    For the year ended December 31, 2009

    Owners' ...

    Solution Summary

    This solution is comprised of a detailed explanation to use the expanded equation to compute the missing quantity, prepare a classified balance sheet for Taylorsville Construction, compute the retained earnings for Edgemont Corporation and compute cash flows and classify cash flows.

    $2.19