Account entries are correct

5 The accounting records of Laurent Company provided the following data: 15 points Statement of Comprehensive Income For year ended 31 December 20X8 942,700 Sales $ Cost of goods sold (565,500) Depreciation expense (13,600) Operating expenses (201,600) eBook References 162,000 Net earnings and comprehensive income $ Statement of Financial Position At 31 December 20X8 20X7 Debits Cash $ 104,100 $ Accounts receivable 54,800 57,800 60.800 Inventory 76,100 Investment, long term 9,100 182,000 Capital assets 283,100 Total debits $ 518,100 $309,700 $ Credits Bank overdraft Accumulated depreciation Accounts payable Short-term bank loan Notes payable, long term 44,000 37,800 12,600 $ 15,200 30,400 18,200 9,100 109,300 60,700 IZ.UUU 5 . JIIVI L-LCUTI WAII IVAN Notes payable, long term 109,300 60,700 157,700 Common shares 242,900 71,500 Retained earnings 18,400 15 points Total credits $ 518,100 309,700 eBook References Other information: a. Paid a $24,300 long-term note payable by issuing common shares. b. Purchased capital assets that cost $101,100; gave a $72,900 long-term note payable and paid $28,200 cash. C. Sold the long-term investment at cost, for cash. d. Assume that unexplained differences in asset, liability, and equity accounts flow from logical sources. Required: 1. Prepare the SCF, using the two-step indirect method of presentation for the operating activities section. (Deductible amounts and Cash outflows should be indicated with minus sign.) LAURENT COMPANY Statement of Cash Flows For the year 31 December 20X8 Operating activities Net earnings $ 162,000 Non-cash items Add: Depreciation 162.000 Changes to working capital: Add: Decrease in accounts receivable Less: Increase in inventory Add: Increase in accounts payable Investing activities Sold long-term investment Paid cash for capital assets $ 162,000 0 Financing activities: 5 Sold long-term investment Paid cash for capital assets 0 15 points Financing activities: Increase in short-term bank loan Issued common shares for cash Paid cash dividend 0 eBook Net change in cash Opening cash Closing cash References $ 0 2. Prepare the operating activities section of the SCF using the direct method. (Deductible amounts and Cash outflows should be indicated with minus sign.) LAURENT COMPANY Partial Statement of Cash Flows For the year 31 December 20X8 Operating activities: Cash collected from customers Cash paid to suppliers Cash paid for other expenses Cash provided by operating activities $ 0