The accounts below appear in the ledger of Anita Baker Company.   Retained Earnings Dr. Cr. Bal. Jan.  1, 2020 Credit Balance     $ 42,000 Aug. 15 Dividends (cash) $15,000   27,000 Dec. 31 Net Income for 2020   $40,000 67,000     Equipment Dr. Cr. Bal. Jan.  1, 2020 Debit Balance     $140,000 Aug.  3 Purchase of Equipment $62,000   202,000 Sept. 10 Cost of Equipment Constructed 48,000   250,000 Nov. 15 Equipment Sold   $56,000 194,000     Accumulated Depreciation—Equipment Dr. Cr. Bal. Jan.  1, 2020 Credit Balance     $ 84,000 Apr.  8 Major Repairs $21,000   63,000 Nov. 15 Accum. Depreciation on Equipment Sold 25,200   37,800 Dec. 31 Depreciation for 2020   $16,800 54,600 Instructions From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800.

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

The accounts below appear in the ledger of Anita Baker Company.

  Retained Earnings Dr. Cr. Bal.
Jan.  1, 2020 Credit Balance     $ 42,000
Aug. 15 Dividends (cash) $15,000   27,000
Dec. 31 Net Income for 2020   $40,000 67,000
 
  Equipment Dr. Cr. Bal.
Jan.  1, 2020 Debit Balance     $140,000
Aug.  3 Purchase of Equipment $62,000   202,000
Sept. 10 Cost of Equipment Constructed 48,000   250,000
Nov. 15 Equipment Sold   $56,000 194,000
 
  Accumulated Depreciation
Equipment
Dr. Cr. Bal.
Jan.  1, 2020 Credit Balance     $ 84,000
Apr.  8 Major Repairs $21,000   63,000
Nov. 15 Accum. Depreciation on
 Equipment Sold
25,200   37,800
Dec. 31 Depreciation for 2020   $16,800 54,600

Instructions

From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education