【正文】 h o u s a n d s )C u r r e n t l i a b i l i t i e sN o t e s p a y a b l e 2 3 3 , 4 5 0$ A c c o u n t s p a y a b l e 1 3 1 , 8 0 0 A c c r u e d c o m p e n s a t i o n 4 3 , 0 0 0 U n e a r n e d r e v e n u e 1 7 , 0 0 0 I n c o m e t a x p a y a b l e 2 3 , 4 0 0 C u r r e n t m a t u r i t i e s L T d e b t 1 2 1 , 0 0 0 T o t a l c u r r e n t l i a b i l i t i e s 5 6 9 , 6 5 0 L o n g t e r m l i a b i l i t i e sL o n g t e r m d e b t 9 7 9 , 5 0 0 O b l i g a t i o n s c a p i t a l l e a s e 3 4 5 , 8 0 0 D e f e r r e d i n c o m e t a x e s 7 7 , 9 0 9 T o t a l l o n g t e r m l i a b i l i t i e s 1 , 4 0 3 , 2 0 9 S t o c k h o l d e r s 39。 Unearned Revenue $41,000。 Ine Taxes Payable $29,000. Prepare the longterm liabilities section of the balance sheet. Longterm liabilities Pension Asset/liability $375,000 Bonds payable 400,000 Discount on bonds payable (29,000) Total 746,000 LO 2 Identify the major classifications of the balance sheet. Balance Sheet – ―LongTerm Liabilities‖ 541 NonCurrent Liabilities Illustration 514 Balance Sheet Presentation of NonCurrent Liabilities LO 2 Identify the major classifications of the balance sheet. Balance Sheet – ―LongTerm Liabilities‖ 542 Owners’ Equity LO 2 Identify the major classifications of the balance sheet. Balance Sheet – ―Owner’s Equity‖ 543 Illustration 515 Balance Sheet Presentation of Stockholders’ Equity Owners’ Equity LO 2 Identify the major classifications of the balance sheet. Balance Sheet – ―Owner’s Equity‖ 544 (a) Investment in preferred stock Classification in the Balance Sheet Account (b) Treasury stock (c) Common stock (d) Cash dividends payable (e) Accumulated depreciation (f) Interest payable (g) Deficit (h) Trading securities (i) Unearned revenue (a) Current asset/Investment (b) Stockholders’ Equity (c) Stockholders’ Equity (d) Current liability (e) Contraasset (f) Current liability (g) Stockholders’ Equity (h) Current asset (i) Current liability Classification LO 2 Identify the major classifications of the balance sheet. 545 Classified Balance Sheet ? Account form ? Report form Balance Sheet Format Accounting Trends and Techniques— 2020 (New York: AICPA) indicates that all of the 500 panies surveyed use either the “report form” (438) or the “account form” (62), sometimes collectively referred to as the “customary form.” LO 3 Prepare a classified balance sheet using the report and account formats. 546 LO 3 Prepare a classified balance sheet using the report and account formats. Balance Sheet Format Account Form Illustration 516 547 LO 3 Balance Sheet Format Report Form Illustration 516 548 Statement of Cash Flows LO 4 Indicate the purpose of the statement of cash flows. One of the three basic objectives of financial reporting is ―assessing the amounts, timing, and uncertainty of cash flows.‖ 549 To provide relevant information about the cash receipts and cash payments of an enterprise during a period. The statement provides answers to the following questions: 1. Where did the cash e from? 2. What was the cash used for? 3. What was the change in the cash balance? Purpose of the Statement of Cash Flows Statement of Cash Flows LO 4 Indicate the purpose of the statement of cash flows. 550 Three different activities: ? Operating, Content and Format Statement of Cash Flows LO 5 Identify the content of the statement of cash flows. ? Investing, ? Financing Illustration 517 Basic Format of Cash Flow Statement 551 Financing Cash inflows and outflows from noncurrent liabilities and equity. Statement of Cash Flows Operating Cash inflows and outflows that enter into the determination of ine. Investing Cash inflows and outflows from noncurrent assets. The statement’s value is that it helps users evaluate liquidity, solvency, and financial flexibility. LO 5 Identify the content of the statement of cash flows. Content and Format 552 Statement of Cash Flows LO 5 Identify the content of the statement of cash flows. Illustration 518 553 Information obtained from several sources: (1) parative balance sheets, (2) the current ine statement, and (3) selected transaction data. Sources of Information Preparation of the Statement of Cash Flows LO 6 Prepare a basic statement of cash flows. 554 Statement of Cash Flows Statement of Cash Flows: On January 1, 2020, in its first year of operations, Telemarketing Inc. issued 50,000 shares of $1 par value mon stock for $50,000 cash. The pany rented its office space, furniture, and telemunications equipment and performed marketing services throughout the first year. In June 2020 the pany purchased land for $15,000. Illustration 519 shows the pany’s parative balance sheets at the beginning and end of 2020. LO 6 Prepare a basic statement of cash flows. 555 Statement of Cash Flows LO 6 Illustration 519 Illustration 520 556 Statement of Cash Flows Preparing the Statement of Cash Flows Determine: 1. Cash provided by (or used in) operating activities. 2. Cash provided by or used in investing and financing activities. 3. Determine the change (increase or decrease) in cash during the period. 4. Reconcile the change in cash with the beginning and the ending cash balances. LO 6 Prepare a basic statement of cash flows. 557 Statement of Cash Flows Cash provided by operating activities Illustration 521 Illustration 519 Illustration 520 LO 6 Prepare a basic statement of cash flows. 558 Statement of Cash Flows Illustration 521 Next, the pany determines its investing