Question
The following three accounts appear in the general ledger of Swifty Corp. during 2022. Equipment Date Debit Credit Balance Jan. 1 Balance 160,000 July 31
The following three accounts appear in the general ledger of Swifty Corp. during 2022.
| Equipment | ||||||||
|---|---|---|---|---|---|---|---|---|
| Date | Debit | Credit | Balance | |||||
| Jan. 1 | Balance | 160,000 | ||||||
| July 31 | Purchase of equipment | 71,900 | 231,900 | |||||
| Sept. 2 | Purchase of equipment | 55,000 | 286,900 | |||||
| Nov. 10 | Cost of equipment sold | 48,200 | 238,700 | |||||
| Accumulated DepreciationEquipment | ||||||||
| Date | Debit | Credit | Balance | |||||
| Jan. 1 | Balance | 70,100 | ||||||
| Nov. 10 | Accumulated depreciation on equipment sold | 16,700 | 53,400 | |||||
| Dec. 31 | Depreciation for year | 25,000 | 78,400 | |||||
| Retained Earnings | ||||||||
| Date | Debit | Credit | Balance | |||||
| Jan. 1 | Balance | 105,200 | ||||||
| Aug. 23 | Dividends (cash) | 18,900 | 86,300 | |||||
| Dec. 31 | Net income | 66,100 | 152,400 | |||||
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of plant assets was $8,300. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
| SWIFTY CORP Statement of Cash Flows (Partial) Indirect Method choose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Month Ended December 31, 2022 | ||
|---|---|---|
| select an opening name for section one Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| select an item Purchase of EquipmentDecrease in Accounts PayableDepreciation ExpenseNet IncomeLoss on Disposal of Plant AssetsConstruction of EquipmentPayment of Cash DividendsSale of EquipmentIncrease in Accounts Receivable | $enter a dollar amount | |
| Adjustments to reconcile net income to | ||
| select a subsection name Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| select an item Increase in Accounts ReceivablePurchase of EquipmentSale of EquipmentConstruction of EquipmentLoss on Disposal of Plant AssetsDepreciation ExpensePayment of Cash DividendsNet IncomeDecrease in Accounts Payable | $enter a dollar amount | |
| select an item Payment of Cash DividendsNet IncomeSale of EquipmentIncrease in Accounts ReceivableConstruction of EquipmentLoss on Disposal of Plant AssetsDepreciation ExpensePurchase of EquipmentDecrease in Accounts Payable | enter a dollar amount | |
| enter a subtotal of the adjustments | ||
| select a closing name for section one Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | enter a total amount for section one | |
| select an opening name for section two Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| select an item Construction of EquipmentLoss on Disposal of Plant AssetsSale of EquipmentIncrease in Accounts ReceivablePurchase of EquipmentNet IncomeDepreciation ExpenseDecrease in Accounts PayablePayment of Cash Dividends | enter a dollar amount | |
| select an item Decrease in Accounts PayableSale of EquipmentNet IncomeLoss on Disposal of Plant AssetsPayment of Cash DividendsConstruction of EquipmentIncrease in Accounts ReceivablePurchase of EquipmentDepreciation Expense | enter a dollar amount | |
| select a closing name for section two Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | enter a total amount for section two | |
| select an opening name for section three Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | ||
| select an item Net IncomeDepreciation ExpenseLoss on Disposal of Plant AssetsSale of EquipmentPurchase of EquipmentConstruction of EquipmentPayment of Cash DividendsIncrease in Accounts ReceivableDecrease in Accounts Payable | enter a dollar amount | |
| select a closing name for section three Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | enter a total amount for section three | |
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
