Burrow Mining Inc.?s comparative balance sheet information at December 31, 2020 and 2019, and its income statement

Question:

Burrow Mining Inc.?s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows:

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During 2020, the following transactions occurred:

1. Issued $14,000 of bonds payable at face value.

2. Sold the non-current investment on January 1, 2020, for $16,800.

3. Sold equipment for $3,920 cash that had originally cost $17,920 and had $11,760 of accumulated depreciation.

4. Purchased equipment for $11,200 cash.

Required

a. How much was paid in dividends during 2020?

b. Prepare a statement of cash flows for Burrow Mining Inc. for the year ended December 31, 2020, using the indirect method.

Analysis Component: Accounts Receivable increased from $21,840 to $51,520 in 2020. What transactions caused this account to change? Accounts Payable decreased during 2020. What caused this account to change?

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Related Book For  book-img-for-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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