The following accounts appear in the ledger of Tanaka Limited, which uses IFRS, and has adopted the policy of classifying dividends paid as operating activities:

Instructions
Show how the information posted in the accounts is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on disposal of equipment (November 15) was $5,800.

Transcribed Image Text:

Retained Earnings Dr Cr Bal Jan. 1, 2017 Credit balance Aug. 15 Dec. 31 $ 42,000 Dividends (cash) Net income for 2017 $15,000 27,000 67,000 Bal $40,000 Equipment Dr Cr Jan. 1, 2017 Debit balance Aug. 3 Sept. 10 Nov. 15 Purchase of equipment Purchase of equipment Equipment sold $140,000 202,000 250,000 194,000 $62,000 48,000 $56,000 Accumulated Depreciation-Equipment Dr Cr Bal $ 84,000 Jan. 1, 2017 Credit balance Nov. 15 Accumulated depreciation on $25,200 equipment sold Depreciation for 2017 58,800 75,600 Dec. 31 $16,800