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Instructions Labels and Amount Descriptions Labels The information below was taken from the records of the Piper Company for the year ended Financing Activities December 31, 2020: Investing Activities Operating Activities Acquisition of building $250,000 Amount Descriptions Amortization of premium on bonds payable 2,000 Amortization of premium on bonds payable Decrease in deferred income tax liability 8,000 Acquisition of building Decrease in inventories 6,000 Cash, January 1, 2020 Decrease in salaries payable 2,000 Cash, December 31, 2020 Depreciation expense 24,000 Converted bonds to preferred stocks Dividends paid 11,000 Depreciation expense Loss on sale of land 18,000 Decrease in inventories Increase in accounts payable 14,000 Decrease in deferred income tax liability Increase in accounts receivable 5,000 Decrease in salaries payable Issuance of long-term bonds payable 150,000 Increase in accounts payable Net income 240,000 Increase in accounts receivable Patent amortization expense 4,000 Issuance of long-term bonds payable Preferred stock issued to convert bonds 50,000 Issued preferred stock to convert bonds Retirement of bonds 100,000 Loss on sale of land Proceeds from sale of land 80,000 Net income Ending cash balance 400,000 Net cash provided by operating activities Required: Net cash provided by financing activities Prepare Piper's statement of cash flows for 2020, using the indirect method. Net cash provided by investing activities Net cash used for operating activities Net cash used for financing activities Net cash used for investing activities Net Increase in Cash Patent amortization expense Proceeds from sale of land Payment of dividends Retirement of bonds

Instructions Labels and Amount Descriptions Labels The information below was taken from the records of the Piper Company for the year ended Financing Activities December 31, 2020: Investing Activities Operating Activities Acquisition of building $250,000 Amount Descriptions Amortization of premium on bonds payable 2,000 Amortization of premium on bonds payable Decrease in deferred income tax liability 8,000 Acquisition of building Decrease in inventories 6,000 Cash, January 1, 2020 Decrease in salaries payable 2,000 Cash, December 31, 2020 Depreciation expense 24,000 Converted bonds to preferred stocks Dividends paid 11,000 Depreciation expense Loss on sale of land 18,000 Decrease in inventories Increase in accounts payable 14,000 Decrease in deferred income tax liability Increase in accounts receivable 5,000 Decrease in salaries payable Issuance of long-term bonds payable 150,000 Increase in accounts payable Net income 240,000 Increase in accounts receivable Patent amortization expense 4,000 Issuance of long-term bonds payable Preferred stock issued to convert bonds 50,000 Issued preferred stock to convert bonds Retirement of bonds 100,000 Loss on sale of land Proceeds from sale of land 80,000 Net income Ending cash balance 400,000 Net cash provided by operating activities Required: Net cash provided by financing activities Prepare Piper's statement of cash flows for 2020, using the indirect method. Net cash provided by investing activities Net cash used for operating activities Net cash used for financing activities Net cash used for investing activities Net Increase in Cash Patent amortization expense Proceeds from sale of land Payment of dividends Retirement of bonds

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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Instructions Labels and Amount Descriptions Labels The information below was taken from the records of the Piper Company for the year ended Financing Activities December 31, 2020: Investing Activities Operating Activities Acquisition of building $250,000 Amount Descriptions Amortization of premium on bonds payable 2,000 Amortization of premium on bonds payable Decrease in deferred income tax liability 8,000 Acquisition of building Decrease in inventories 6,000 Cash, January 1, 2020 Decrease in salaries payable 2,000 Cash, December 31, 2020 Depreciation expense 24,000 Converted bonds to preferred stocks Dividends paid 11,000 Depreciation expense Loss on sale of land 18,000 Decrease in inventories Increase in accounts payable 14,000 Decrease in deferred income tax liability Increase in accounts receivable 5,000 Decrease in salaries payable Issuance of long-term bonds payable 150,000 Increase in accounts payable Net income 240,000 Increase in accounts receivable Patent amortization expense 4,000 Issuance of long-term bonds payable Preferred stock issued to convert bonds 50,000 Issued preferred stock to convert bonds Retirement of bonds 100,000 Loss on sale of land Proceeds from sale of land 80,000 Net income Ending cash balance 400,000 Net cash provided by operating activities Required: Net cash provided by financing activities Prepare Piper's statement of cash flows for 2020, using the indirect method. Net cash provided by investing activities Net cash used for operating activities Net cash used for financing activities Net cash used for investing activities Net Increase in Cash Patent amortization expense Proceeds from sale of land Payment of dividends Retirement of bonds
Transcribed Image Text:Instructions Labels and Amount Descriptions Labels The information below was taken from the records of the Piper Company for the year ended Financing Activities December 31, 2020: Investing Activities Operating Activities Acquisition of building $250,000 Amount Descriptions Amortization of premium on bonds payable 2,000 Amortization of premium on bonds payable Decrease in deferred income tax liability 8,000 Acquisition of building Decrease in inventories 6,000 Cash, January 1, 2020 Decrease in salaries payable 2,000 Cash, December 31, 2020 Depreciation expense 24,000 Converted bonds to preferred stocks Dividends paid 11,000 Depreciation expense Loss on sale of land 18,000 Decrease in inventories Increase in accounts payable 14,000 Decrease in deferred income tax liability Increase in accounts receivable 5,000 Decrease in salaries payable Issuance of long-term bonds payable 150,000 Increase in accounts payable Net income 240,000 Increase in accounts receivable Patent amortization expense 4,000 Issuance of long-term bonds payable Preferred stock issued to convert bonds 50,000 Issued preferred stock to convert bonds Retirement of bonds 100,000 Loss on sale of land Proceeds from sale of land 80,000 Net income Ending cash balance 400,000 Net cash provided by operating activities Required: Net cash provided by financing activities Prepare Piper's statement of cash flows for 2020, using the indirect method. Net cash provided by investing activities Net cash used for operating activities Net cash used for financing activities Net cash used for investing activities Net Increase in Cash Patent amortization expense Proceeds from sale of land Payment of dividends Retirement of bonds
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