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reduced operating cash flow ii. iii. Adjusting entries have no impact on operating cash flow Without the sale of equipment, Snow would have needed to
reduced operating cash flow ii. iii. Adjusting entries have no impact on operating cash flow Without the sale of equipment, Snow would have needed to raise external finance A Firm recording a net loss can still generate a positive operating cash flow iv. Exercise 3 (45 points) Sunshine Limited has the following equity accounts on January 1, 2022: Share Capital-Ordinary (4 par, 200,000 shares issued) 800,000 Share Premium-Ordinary 300,000 Retained Earnings 300,000. In 2022, the company had the following treasury share transactions. February: The firm pays a dividend of 1.0 per share. The dividend was announced by the board of directors in October of the previous fiscal year. . April: Issued 20,000 ordinary shares at a price of 20. July: The company repurchases 20,000 shares at 15 per share. September: Sold 12,000 shares at 18 per share. November: Sold 8,000 shares at 7 per share. Sunshine uses the cost method of accounting for treasury shares. In 2022, the company reported a net loss of 20,000. I Instructions a. Journalize the treasury share transactions, and prepare the closing entries on December 31, 2022, for net income and dividends. b. Open T-accounts for (1) Share Capital - Ordinary; (2) Share Premium - Ordinary; (3) Treasury Shares; (4) Share Premium-Treasury, (5) Retained Earnings. Post to these accounts. (without using a posting reference). c. Prepare the equity section for Sunshine Limited at December 31, 2022
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