Exercise 12-6 The following three accounts appear in the general ledger of Marin
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Exercise 12-6 The following three accounts appear in the general ledger of Marin Inc. during 2017.
Please bold and make answers clear looking for the answers that i marked in red. I only have one attempt left so please be correct.
Exercise 12-6 Your answer is partially correct. Try again. The following three accounts appear in the general ledger of Marin Inc. during 2017 Equipment Date Jan. 1 July 31 Sept. 2 Nov. 10 Balance Purchase of equipment Cost of equipment constructed Cost of equipment sold Debit Credit Balance 424,640 610,420 751,082 130,046 621,036 185,780 140,662 Date Jan. 1 Nov. 10 Dec. 31 Balance Accumulated depreciation on equipment sold Depreciation for year Debit Credit Balance 188,434 145,970 74,312 220,282 42,464 Date Jan. 1 Balance Aug. 23 Dividends (cash) Dec. 31 Net income Debit Credit Balance 278,670 241,514 191,088 432,602 37,156 From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of plant assets was $21,232. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $140,662.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)Explanation / Answer
Cash Flow s from Operating Activities: Net Income 191088 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 21232 Loss on Disposal of Plant Assets 74312 95544 Net Cash Provided by Operating Activities 286632 Cash Flow s from Investing Activities Purchase of Equipment -185780 Construction of Equipment -140662 Sale of Plant Assets 66350 Net Cash Used by Investing Activities -260092 Cash Flow s from Financing Activities Payment of Cash Dividends -37156 Workings: Sale of Plant Assets=(130046-42464)-21232=$66350
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