1) On the basis of the details of the following fixed asset account, indicate th
ID: 2597990 • Letter: 1
Question
1) On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
2) 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.
If an amount is not reported on the statement of cash flows, enter in "0" in the Amount column.
3) On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the Financing Activities section of the statement of cash flows, assuming no gain or loss on retiring the bonds:
ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 1,050,000 Mar. 12 Purchased for cash 326,000 1,376,000 Oct. 4 Sold for $179,000 153,000 1,223,000Explanation / Answer
Requirement 1: Item Section of Statement of Cash Flows Added / Deducted Amount ($)) March 12: Purchase of Fixed Asset Investing activities Section Deducted 326000 October 4: Sale of Fixed Asset Investing activities Added 179000 Gain on sale of fixed asset (Assume indirect method) Operating Activities Section Deducted 26000 (179000-153000) Requirement 2: Item Section of Statement of Cash Flows Added / Deducted Amount ($)) Sale of Common Stock Financing Activities Section Added 573750 (225000+348750) Cash Dividend Financing Activities Section Deducted 85900 Stock Dividend Not reported on statement of CFs Not Applicable Requirement 3: Item Section of Statement of Cash Flows Added / Deducted Amount ($)) Retire Bonds Financing Activities Section Deducted 101200 (110000-8800) Issue Bonds Financing Activities Section Added 307900 (330000-22100) Amortisation of Discount Operating Activities Section Added 1900
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