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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))

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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