PLEASE HELP!! On the basis of the following stockholders equity accounts, indica
ID: 2507794 • Letter: P
Question
PLEASE HELP!!
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, $10 Par Account NO
DR CR DR CR
Balance, 50,000 shares 500,000
60,000 shares issued for cash 60,000 560,000
2,750 share stock dividend 27,500 587,500
ACCOUNT Paid in Capital in Excess of Par- Common Stock
Balance 90,000
6,000 shares issued for cash 240,000 330,000
Stock Dividend 137,500 467,500
ACCOUNT Retained Earnings
Balance 475,000
Stock Dividend 165,500 310,000
Cash Dividend 180,000 130,000
Net Income 450,000 580,000
Explanation / Answer
STATEMENT OF CASH FLOWS
CASHFLOW FROM FINANCING ACTIVIES
6000 SHARES ISSUED FOR CASH[60000+240000] = 300000
CASH DIVIDEND PAID = (180000)
NET CASHINFLOW FROM FINANCING ACTIVITIES BASED ON STOCKHOLDERS EQUITY ACCOUNT = 120000
NOTE:=-STOCK DIVIDEND PAID DO NOT INVOLVE ANY CASH TRANSACTIONS , THEREFORE IT WILL NOT AFFECT THE CASHFLOW STATEMENT AMD THEREFORE IT WOULD EVEN NOT BE REPORTED IN THE CASH FLOW STATEMENT
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