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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