Reporting Stockholders' Equity Items on Statement of Cash Flows On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year. Account Common Stock, $20 par Account NO. Date Item Debit Credit Balance Debit Balance Credit Jan. 1 Balance, 60,000 shares 1,200,000 Apr. 2 15,000 shares issued for cash 300,000 1,500,000 June 30 2,0000-share stock dividend 40,000 1,540,000 Account Paid-In Capital in Excess of Par-Common Stock Account NO. Date Item Debit Credit Balance Debit Balance Credit Jan. 1 Balance 240,000 Apr. 2 15,000 shares issued for cash 495,000 735,000 June 30 Stock dividend 30,000 765,000 Account Retained Earnings Account NO. Date Item Debit Credit Balance Debit Balance Credit Jan. 1 Balance 996,000 June 30 Stock dividend 70,000 926,000 Dec. 30 Cash dividend 114,500 811,500 Dec. 31 Net Income 717,100 1,528,600 If an amount is not reported on the statement of cash flows, leave the amount box blank. Item Section of Statement of Cash Flows Added or Deducted Amount Sale of common stock Financing activities section Added $ Cash dividend Financing activities section Deducted $ Stock dividend Not reported on statement of cash flows Not applicable $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Reporting Stockholders' Equity Items on Statement of Cash Flows

On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.

Account Common Stock, $20 par Account NO.

Date	Item	Debit	Credit	Balance Debit	Balance Credit
Jan. 1	Balance, 60,000 shares				1,200,000
Apr. 2	15,000 shares issued for cash		300,000		1,500,000
June 30	2,0000-share stock dividend		40,000		1,540,000

Account Paid-In Capital in Excess of Par-Common Stock Account NO.

Date	Item	Debit	Credit	Balance Debit	Balance Credit
Jan. 1	Balance				240,000
Apr. 2	15,000 shares issued for cash		495,000		735,000
June 30	Stock dividend		30,000		765,000

Account Retained Earnings Account NO.

Date	Item	Debit	Credit	Balance Debit	Balance Credit
Jan. 1	Balance				996,000
June 30	Stock dividend	70,000			926,000
Dec. 30	Cash dividend	114,500			811,500
Dec. 31	Net Income		717,100		1,528,600

If an amount is not reported on the statement of cash flows, leave the amount box blank.

Item	Section of Statement of Cash Flows	Added or Deducted	Amount
Sale of common stock	Financing activities section	Added	$
Cash dividend	Financing activities section	Deducted	$
Stock dividend	Not reported on statement of cash flows	Not applicable	$

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