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Exercise 17-10 Oriole Homes Ltd., a private company reporting under ASPE, reported the following for the year ended September 30, 2021: 2021 2020 Land $90,000
Exercise 17-10
Oriole Homes Ltd., a private company reporting under ASPE, reported the following for the year ended September 30, 2021:
2021 | 2020 | ||||
Land | $90,000 | $60,000 | |||
Building | 105,000 | 105,000 | |||
Equipment | 41,700 | 37,500 | |||
Accumulated depreciation | 19,500 | 16,500 | |||
Dividends payable | 3,000 | 6,000 | |||
Mortgage note payable | 33,000 | 15,000 | |||
Common shares | 77,500 | 52,000 | |||
Retained earnings | 66,000 | 24,000 | |||
Depreciation expense | 4,500 | ||||
Gain on equipment sold | 600 | ||||
Profit | 63,000 |
Additional information:
1. | Equipment was purchased for $6,000. | |
2. | Land was purchased for $10,500 cash and a mortgage note payable was issued for the balance. | |
3. | Common shares were issued for $25,500 cash. |
Prepare the investing and financing activities sections of the cash flow statement and any required note disclosure. (Hint: Use T accounts to help you calculate the cash flows.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Note X: Land costing $
was acquired by paying $
cash and issuing a mortgage note payable for $
ORIOLE HOMES LTD. Cash Flow Statement (Partial) |
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