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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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