PROBLEM #1 FILL OUT BLANK
Reporting Land Transactions on Statement of Cash Flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT N0. 1,158,000 1,529,000 174,000 1,355,000 Section of Statement of Item Cash Flows Added or Deducted Amount Mar. 12: Purchase of xed asset Investing activities section V/ Deducted J $S Oct. 4: Sale of xed asset Investing activities section \\I Added J $S Gain on sale of xed asset (assume the indirect method) Not on statement X Deducted V $E The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20V? 2 Assets 3 Cash $146,480.00 $179,640.00 4 Accounts receivable (net) 225,010.00 241,920.00 5 Inventories 321,600.00 298,870.00 5 Prepaid expenses 13,030.00 10,420.00 7 Equipment 654,380.00 537,900.00 3 Accumulated depreciation-equipment (169,970.00) (133,130.00) 9 Total assets $1,190,530.00 $1,135,620.00 1o Liabilities and Stodsholders' Equity 11 Accounts payable (merchandise creditors) $240,960.00 $236,720.00 12 Mortgage note payable 0.00 335,410.00 13 Common stock,$10 par 510,000.00 247,000.00 14 Paid-in capital: Excess of issue price over par-common stock 430,000.00 310,000.00 15 Retained earnings 9,570.00 6,490.00 16 Total liabilities and stockholders' equity $1,190,530.00 $1,135,620.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: A. Net income, $155,560 B. Depreciation reported on the income statement, $82,480 C. Equipment was purchased at a cost of $162,120 and fully depreciated equipment costing $45,640 was discarded, with no salvage realized. D. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. E. Cash dividends declared and paid, $152,480 Prepare a statement of cash flows, using the indirect method of presenting cash ows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outows, cash payments, decreases in cash, or any negative adjustments. Labels and Amount Descriptions Cash paid for dividends Cash paid for equipment Cash paid for merchandise Cash paid for purchase of equipment Cash paid for purchase of land Cash paid to retire mortgage note payable Cash received from customers Cash received from sale of common stock Change in cash December 31, 20Y8 Decrease in inventory Decrease in accounts payable Decrease in accounts receivable Decrease in prepaid expenses Depreciation For the Year Ended December 31, 20Y8 Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid expenses Loss on disposal of equipment Iv. I'll\" I'll\". nInpuu '\"uulllu'l u...' nw-v Gain on disposal of equipment Gain on sale of investments Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid expenses Loss on disposal of equipment Loss on sale of investments Net cash ow from financing activities Net cash ow from investing activities Net cash ow from operating activities Net cash ow used for financing activities Net cash ow used for investing activities Net cash ow used for operating activities Net income Net loss
