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Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2021 and 2020, and the Increases or decreases in each account
Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2021 and 2020, and the Increases or decreases in each account from 2020 to 2021. Also presented is selected Income statement Information for the year ended December 31, 2021, and additional information. Selected Balance Sheet Accounts Assets Accounts receivable 2021 2020 Increase (Decrease) s 34,000 $ 24,000 $ 10,000 Property, plant, and equipment 277,000 Accumulated depreciation (178,000) 247,000 (167,000) 30,000 11,000 Liabilities and Stockholders' Equity Bonds payable 49,000 46,000 3,000 Dividends payable 8,000 5,000 3,000 Common stock, $1 par 22,000 19,000 3,000 Additional paid-in capital 9,000 3,000 6,000 Retained earnings 104,000 91,000 13,000 Selected Income Statement Information for the Year Ended December 31, 2021 Sales revenue $ 155,000 Depreciation 33,000 Gain on sale of equipment Net income 13,000 28,000 Additional Information: a. Accounts receivable relate to sales of merchandise. b. During 2021, equipment costing $40,000 was sold for cash c. During 2021, bonds payable with a face value of $20,000 were Issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. no amortization of bond discount or premium Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2021. The following two responses are required for each item: a. Determine the amount that should be reported in Del Conte's 2021 statement of cash flows. b. Select the category (l.e., O- Operating activity. I- Investing activity and F- Financing activity) in which the amount should be reported in the statement of cash flows. 1. Cash collections from customers (direct method) 2 Payments for purchase of property, plant, and equipment 3. Proceeds from sale of equipment. 4 Cash dividends paid. 5. Redemption of bonds payable. Amount Category
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