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You are the controller for 21st Century Technologies Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes

You are the controller for 21st Century Technologies. Your staff has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the company’s balance sheet accounts.  Additional Information 1. Accounts receivable increased by $60,000. 2. Accrued interest receivable decreased by $2,000. 3. Inventory decreased by $60,000, and accounts payable to suppliers of merchandise decreased by $16,000. 4. Short-term prepayments of operating expenses increased by $6,000, and accrued liabilities for operating expenses decreased by $8,000. 5. The liability for accrued interest payable increased by $4,000 during the year. 6. The liability for accrued income taxes payable decreased by $14,000 during the year. 7. The following schedule summarizes the total debit and credit entries during the year in other balance sheet accounts:  8. The $36,000 in credit entries to the Plant Assets account is net of any debits to Accumulated Depreciation when plant assets were retired. Thus, the $36,000 in credit entries represents the book value of all plant assets sold or retired during the year. 9. The $120,000 debit to Retained Earnings represents dividends declared and paid during the year. The $260,000 credit entry represents the net income shown in the income statement. 10. All investing and financing activities were cash transactions. 11. Cash and cash equivalents amounted to $244,000 

Apr 06 2020 View more View Less

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