The management of Banciu Corporation provides you with comparative balance sheets at December X and December X appearing below.

December

XX

Assets

Cash $ $

Accounts receivable

Allowance for uncollectible accounts

Inventories

Machinery and equipment

Accumulated depreciation on machinery and equipment

Leasehold improvements

Accumulated amortization on leasehold improvements

Securities held for plant expansion

Patents

Totals $ $

Liabilities and stockholders equity

Accounts payable $ $

Dividend payable

Current portion of serial bonds payable

serial bonds payablenoncurrent portion

Preferred stock

Common stock

Retained earnings

Totals $ $

Supplemental Information:

The following table presents a comparative analysis of retained earnings as of December X and December X

December

XX

Beginning balance $ $

Net income

Dividends declared

Premium on repurchased preferred Stock

Ending balance

$ $

On December X the board of directors declared a cash dividend of $ per share, payable to holders of common stock on January X

Purchased new machinery for $ In addition, Banciu sold certain machinery it was no longer using for $ The machinery cost $ and had accumulated depreciation of $ at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.

Purchased preferred shares, par value $ at $ and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.

Paid $ of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $ during the year ended December X

During X Banciu wrote off accounts receivable totaling $ as uncollectible.

During X Banciu purchased $ of securities that are being held for future plant expansion.

Required:

Prepare the entries in general journal form that would be entered into Taccounts needed to prepare a statement of cash flows from the data given. For example, the first entry would be

Cash OperationsNet income $

Retained earnings $

Prepare a statement of cash flows for Banciu Corporation for X Use the indirect method for presenting cash flow from operations.