Presented Below Is a Partially Completed Balance Sheet for Baldin

question 18

Essay

Presented below is a partially completed balance sheet for Baldin, Inc., at December 31, 2014, together with comparative data for the year ended December 31, 2013. From the Statement of Cash Flows for the year ended December 31, 2014, you determine that:
• Net income for the year ended December 31, 2014, was $106,000.
• Dividends paid during the year ended December 31, 2014, were $42,000.
• Accounts receivable increased $14,000 during the year ended December 31, 2014.
• The cost of new buildings acquired during 2014, was $85,000.
• No buildings were disposed of during 2014.
• The land account was not affected by any transactions during the year, but the fair value of the land at December 31, 2014, is $210,000. Required:
(a.) Complete the December 31, 2014, balance sheet.
(b.) Prepare a statement of cash flows for the year ended December 31, 2014.

---

Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.

Raw Material

The basic material from which a product is made, used in the initial stages of production.

Materials Price Variance

The difference between the actual cost of materials and the standard cost multiplied by the quantities purchased.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, based on the standard cost.