Question
The following three accounts appear in the general ledger of Monty Corp. during 2022. Equipment Date Debit Credit Balance Jan. 1 Balance 256,000 July 31
The following three accounts appear in the general ledger of Monty Corp. during 2022.
Equipment | ||||||||
---|---|---|---|---|---|---|---|---|
Date | Debit | Credit | Balance | |||||
Jan. 1 | Balance | 256,000 | ||||||
July 31 | Purchase of equipment | 112,000 | 368,000 | |||||
Sept. 2 | Cost of equipment constructed | 84,800 | 452,800 | |||||
Nov. 10 | Cost of equipment sold | 78,400 | 374,400 | |||||
Accumulated DepreciationEquipment | ||||||||
Date | Debit | Credit | Balance | |||||
Jan. 1 | Balance | 113,600 | ||||||
Nov. 10 | Accumulated depreciation on equipment sold | 25,600 | 88,000 | |||||
Dec. 31 | Depreciation for year | 44,800 | 132,800 | |||||
Retained Earnings | ||||||||
Date | Debit | Credit | Balance | |||||
Jan. 1 | Balance | 168,000 | ||||||
Aug. 23 | Dividends (cash) | 22,400 | 145,600 | |||||
Dec. 31 | Net income | 115,200 | 260,800 |
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 $12,800. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $84,800.) (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Monty Corp. Partial Statement of Cash Flows Choose the accounting period December 31, 2022For the Year Ended December 31, 2022For the Quarter Ended December 31, 2022 | ||
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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 Construction of EquipmentDepreciation ExpenseGain on Disposal of Plant AssetsLoss on Disposal of Plant AssetsNet IncomePayment of Cash DividendsPurchase of EquipmentSale of Equipment | $Enter a dollar amount | |
Adjustments to reconcile net income to | ||
Select an opening 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 Construction of EquipmentDepreciation ExpenseGain on Disposal of Plant AssetsLoss on Disposal of Plant AssetsNet IncomePayment of Cash DividendsPurchase of EquipmentSale of Equipment | $Enter a dollar amount | |
Select an item Construction of EquipmentDepreciation ExpenseGain on Disposal of Plant AssetsLoss on Disposal of Plant AssetsNet IncomePayment of Cash DividendsPurchase of EquipmentSale of Equipment | Enter a dollar amount | |
Enter a total amount for this subsection | ||
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 EquipmentDepreciation ExpenseGain on Disposal of Plant AssetsLoss on Disposal of Plant AssetsNet IncomePayment of Cash DividendsPurchase of EquipmentSale of Equipment | Enter a dollar amount | |
Select an item Construction of EquipmentDepreciation ExpenseGain on Disposal of Plant AssetsLoss on Disposal of Plant AssetsNet IncomePayment of Cash DividendsPurchase of EquipmentSale of Equipment | Enter a dollar amount | |
Select an item Construction of EquipmentDepreciation ExpenseGain on Disposal of Plant AssetsLoss on Disposal of Plant AssetsNet IncomePayment of Cash DividendsPurchase of EquipmentSale of Equipment | 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 Construction of EquipmentDepreciation ExpenseGain on Disposal of Plant AssetsLoss on Disposal of Plant AssetsNet IncomePayment of Cash DividendsPurchase of EquipmentSale of Equipment | Enter a dollar amount |
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