E12.2 (LO 1), C An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. a. Exchange of land for patent. b. Sale of building at book value. c. Payment of dividends. d. Depreciation of plant assets. e. Conversion of bonds into common stock. f. Issuance of capital stock. g. Amortization of patent. h. Issuance of bonds for land. i. Purchase of land. j. Loss on disposal of plant assets. k. Retirement of bonds. Instructions Indicate where each item should be presented in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, or significant noncash investing and financing activity. Prepare journal entry and determine effect on cash flows.

E12.2 (LO 1), C An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. a. Exchange of land for patent. b. Sale of building at book value. c. Payment of dividends. d. Depreciation of plant assets. e. Conversion of bonds into common stock. f. Issuance of capital stock. g. Amortization of patent. h. Issuance of bonds for land. i. Purchase of land. j. Loss on disposal of plant assets. k. Retirement of bonds. Instructions Indicate where each item should be presented in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, or significant noncash investing and financing activity. Prepare journal entry and determine effect on cash flows.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 3PB: The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The...

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