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Checker’s Games Co. reported the following items on its comparative balance shee

ID: 2499259 • Letter: C

Question

Checker’s Games Co. reported the following items on its comparative balance sheet for 2008:

2008

2007

Accounts payable

$200,000

$175,000

Dividends payable

10,000

0

Notes payable

280,000

240,000

Common stock

315,000

290,000

Additional paid-in capital

120,000

100,000

Land

175,000

150,000

Goodwill

45,000

75,000

Additional information for 2008:

1. A $70,000 note payable was issued for cash.

2. Interest expense totaled $15,000 for the year of which $13,500 was paid in cash.

3. Stock was issued for cash (the transaction involved common stock).

4. A note payable for $30,000 was repaid.

5. Dividends of $50,000 were declared of which $40,000 have been paid.

Required: Prepare the financing section of the cash flow statement in good form for Checker’s Games Co.

2008

2007

Accounts payable

$200,000

$175,000

Dividends payable

10,000

0

Notes payable

280,000

240,000

Common stock

315,000

290,000

Additional paid-in capital

120,000

100,000

Land

175,000

150,000

Goodwill

45,000

75,000

Explanation / Answer

Checker’s Games Co. reported the following items on its comparative balance shee

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