Date Debit Credit Balance Jan. 1 Balance 158,100 July 31 Purchase of equipment 70,300 228,400 Sept. 2 Cost of equipment constructed 54,200 282,600 Nov. 10 Cost of equipment sold 48,100 234,500 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. 1 Balance 71,500 Nov. 10 Accumulated depreciation on equipment sold 30,000 41.500 Dec. 31 Depreciation for year 24.000 65,500 Retained Earnings Debit Credit Balance Date 104,600 Jan. 1 Balance 17,200 87,400 Aug 23 Dividends (cash) 66,400 153,800 Dec. 31 Net income From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect meth The loss on disposal of plant assets was $4,500. (Hint: Cost of equipment constructed is reported in the investing activities sectie decrease in cash of $54,200.) (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg (15,000))
Date Debit Credit Balance Jan. 1 Balance 158,100 July 31 Purchase of equipment 70,300 228,400 Sept. 2 Cost of equipment constructed 54,200 282,600 Nov. 10 Cost of equipment sold 48,100 234,500 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. 1 Balance 71,500 Nov. 10 Accumulated depreciation on equipment sold 30,000 41.500 Dec. 31 Depreciation for year 24.000 65,500 Retained Earnings Debit Credit Balance Date 104,600 Jan. 1 Balance 17,200 87,400 Aug 23 Dividends (cash) 66,400 153,800 Dec. 31 Net income From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect meth The loss on disposal of plant assets was $4,500. (Hint: Cost of equipment constructed is reported in the investing activities sectie decrease in cash of $54,200.) (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg (15,000))
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please prepare cash flow statement
![Date
Debit
Credit
Balance
Jan. 1
Balance
158,100
July 31
Purchase of equipment
70,300
228,400
Sept. 2
Cost of equipment constructed
54,200
282,600
Nov. 10
Cost of equipment sold
48,100
234,500
Accumulated Depreciation-Equipment
Date
Debit
Credit
Balance
Jan. 1
Balance
71,500
Nov. 10
Accumulated depreciation on equipment sold
30,000
41.500
Dec. 31
Depreciation for year
24,000
65,500
Retained Earnings
Debit
Credit
Balance
Date
104,600
Jan. 1
Balance
17,200
87,400
Aug 23
Dividends (cash)
66,400
153,800
Dec. 31
Net income
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method,
The loss on disposal of plant assets was $4,500. (Hint: Cost of equipment constructed is reported in the investing activities section as a
decrease in cash of $54,200) (Show amounts that decrease cash flow with either a- sign eg-15,000 or in parenthesis eg (15,000))
For the Year Ended December 31, 2020
Cash Flows from Operating Activities
66,400
Net Income
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
%24
24,000
Depreciation Expense
Loss on Disposal of Plant Assets v
24,000
90,400
Net Cash Used bv Ooeratine Activities](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9e32f66d-09c4-42e8-ae49-7bf524a7c65f%2F681b76d4-36c9-4b56-afe7-9e714d9693e6%2F1h20qc8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Date
Debit
Credit
Balance
Jan. 1
Balance
158,100
July 31
Purchase of equipment
70,300
228,400
Sept. 2
Cost of equipment constructed
54,200
282,600
Nov. 10
Cost of equipment sold
48,100
234,500
Accumulated Depreciation-Equipment
Date
Debit
Credit
Balance
Jan. 1
Balance
71,500
Nov. 10
Accumulated depreciation on equipment sold
30,000
41.500
Dec. 31
Depreciation for year
24,000
65,500
Retained Earnings
Debit
Credit
Balance
Date
104,600
Jan. 1
Balance
17,200
87,400
Aug 23
Dividends (cash)
66,400
153,800
Dec. 31
Net income
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method,
The loss on disposal of plant assets was $4,500. (Hint: Cost of equipment constructed is reported in the investing activities section as a
decrease in cash of $54,200) (Show amounts that decrease cash flow with either a- sign eg-15,000 or in parenthesis eg (15,000))
For the Year Ended December 31, 2020
Cash Flows from Operating Activities
66,400
Net Income
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
%24
24,000
Depreciation Expense
Loss on Disposal of Plant Assets v
24,000
90,400
Net Cash Used bv Ooeratine Activities
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