Answered step by step
Verified Expert Solution
Question
1 Approved Answer
K. Crew Company recorded the following amounts in the selected accounts below. Equipment Jan 1, 2020 140,000 Purchase of equipment 112,000 35,000 Cost of equipment
K. Crew Company recorded the following amounts in the selected accounts below. Equipment Jan 1, 2020 140,000 Purchase of equipment 112,000 35,000 Cost of equipment sold Dec 31, 2020 217,000 Retained earnings 123,200 Jan 1, 2020 Dividends 2,800 19.600 Net income 140,000 Dec. 31, 2020 Accumulated depreciation 49,000 Jan 1, 2020 Accumulated depreciation 16,800 Depreciation Expense on equipment sold 21,000 44,800 Dec 31, 2020 Common stock 140,000 Jan 1, 2020 56,000 Stock issuance 196,000 Dec 31, 2020 Additional Information 1. Equipment was sold for $17,500 during the year. 2. Dividends payable increased by $700 from the beginning of the year. 3. $14,000 of the equipment purchases were made by issuing common stock. Required a. Indicate items that would be included in the operating, investing, and financing activities sections of the statement of cash flows, assuming the indirect method in presenting cash flows from operating activities. Note: Indicate a subtraction in the statement of cash flows with a negative sign in the Amount column. Note: If an item is not included in the statement of cash flows, leave the amount blank (zero) and enter "N/A" in the Cash Flow Section column. Item Amount Cash Flow Section Accumulated depreciation on equipment sold $ Depreciation expense $ Dividends paid $ Gain on sale of equipment $ Increase in dividends payable $ Issuance of common stock $ Net income $ Purchase of equipment $ Purchase of equipment with common stock $ Sale of equipment $ b. Indicate any noncash disclosures that would be required based upon the information above. Note: If an item is not included in the noncash disclosures, leave the amount blank (zero) and enter "N/A" in the item column. Item Amount Cash Flow Section Noncash disclosure
Step 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