Reference no: EM131411181
$20,000 cash and $60,000 on account.
6. Cash payments included $18,000 for operating expenses, $5,000 for loan principal, and a $2,000 dividend.
7. $15,000 in expenses were accrued at the end of the year, and depreciation expense of
$1,000 was recorded.
a. Prepare journal entries for each economic event.
b. Prepare a balance sheet as of the end of 2012 and an income statement and statement of shareholders' equity for Tony's business.
c. Prepare a cash T-account and a statement of cash flows using the direct method.
d. Prepare a statement of cash flows using the indirect method, but this time prepare it from the company's two balance sheets, the income statement, and the statement of shareholders' equity earnings. Tony's first balance sheet contains all zero balances.
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