Kay Wing Inc Prepared The Following Balance Sheet at December

The document provides the balance sheet as of December 31, 2016 for Kay Wing Inc. showing total assets of $340,000 and total liabilities and stockholders' equity of $340,000. It then lists 10 transactions that occurred in 2017 including exchanging cash and a note for land, retiring bonds for less than their full amount, issuing additional stock, selling equipment, recording net income and dividends, purchasing investments, acquiring a building by issuing new bonds, and recording depreciation. Financial information is provided for cash, receivables, inventory, payables, and bonds at December 31, 2017. The required tasks are to prepare a statement of cash flows for 2017 and the December 31, 2017 balance sheet.

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Kay Wing Inc Prepared The Following Balance Sheet at December

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trilocksp Singh

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Kay Wing Inc prepared the following balance sheet at

December
Kay Wing Inc prepared the following balance sheet at December

Kay Wing, Inc., prepared the following balance sheet at December 31, 2016.
Kay Wing, Inc.
Balance Sheet as of December 31, 2016
Cash................................................................$ 65,000
Accounts receivable................................................37,000
Inventory............................................................70,000
Long-term investments.............................................20,000
Land..................................................................39,000
Plant and equipment (net) .......................................109,000
Total assets......................................................$ 340,000
Accounts payable.................................................$ 33,000
Taxes payable.........................................................4,000
Bonds payable......................................................80,000
Capital stock.........................................................90,000
Retained earnings..................................................133,000
Total liabilities and stockholders' equity.....................$ 340,000
The following occurred during 2017.
1. $15,000 in cash and a $35,000 note payable were exchanged for land valued at $50,000.
2. Bonds payable (maturing in 2021) in the amount of $30,000 were retired by paying $28,000
cash.
3. Capital stock in the amount of $40,000 was issued at par value.
4. The company sold surplus equipment for $10,000. The equipment had a book value of
$14,000 at the time of the sale.
5. Net income was $35,500.
6. Cash dividends of $5,000 were paid to the stockholders.
7. 100 shares of stock (considered short-term investments) were purchased for $8,300.
8. A new building was acquired through the issuance of $75,000 in bonds.
9. $12,000 of depreciation was recorded on the plant and equipment.
10. At December 31, 2017, Cash was $93,200, Accounts receivable had a balance of $41,500,
Inventory had increased to $73,000, and Accounts payable had fallen to $25,500. Long-term
investments and Taxes payable were unchanged from 2016.
Required:
1. Prepare a statement of cash flows for 2017.
2. Prepare the December 31, 2017, balance sheet for Kay Wing, Inc.