Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I dont know how to do it Question 4 (20 marks) The following are data taken from the records of Durand SpA. Debit Balances December

I dont know how to do it

image text in transcribed
Question 4 (20 marks) The following are data taken from the records of Durand SpA. Debit Balances December 31, 2020 December 31, 2019 Cash $ 15,000 $ 10,000 Current assets other than cash 85,000 58,000 Long-term investments 10,000 53,000 Plant assets 335,000 215,000 $445,000 $336,000 Credit Balances Accumulated depreciation $ 20,000 $ 40,000 Current liabilities 40,000 22,000 Bonds payable 75,000 -0- Share capital-ordinary 254,000 254,000 Retained earnings 56,000 20,000 $445,000 $336,000 Additional information: 1. Held-for-collection investments carried at a cost of $43,000 on December 31, 2019, were sold in 2020 for $34,000. The loss was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2020 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $59,000. 4. Dividends paid amounted to $10,000 5. Depreciation recorded for the year was $28,000. Required: Prepare a statement of cash flows for the year 2020 using the indirect method

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting For Dummies

Authors: Mark P Holtzman, Karen Schoenebeck

1st Edition

1118116429, 978-1118116425

More Books

Students also viewed these Accounting questions