Question
a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are
a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.Prepare the Operating section only of the Statement of Cash Flows for Ikiban Co Ex 12-11.
2017 2016 Assets . 87,500 44,000 51,000 86,500 Cash . 65,000 63,800 IKIBAN INC Income Statement For Year Ended June 30, 2017 186,900 24,000 115,000 (27,000)(9,000) $678,000 411,000 267,000 Liabilities and Equity $25,000 30,000 15,000 3,800 48,800 60,000 108,800 Operating expenses 6,000 3,400 34,400 30,000 64,400 Other expenses 67,000 .. .. Total current liabilities . . . 125,600 41,400 Other gains (losses) 2,000 143,400 43,890 99,510 Equity 220,000 33,300 160,000 24,100 Net incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started