E12.2 (LO 1), C An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. a. Exchange of land for patent. b. Sale of building at book value. c. Payment of dividends. d. Depreciation of plant assets. e. Conversion of bonds into common stock. f. Issuance of capital stock. g. Amortization of patent. h. Issuance of bonds for land. i. Purchase of land. j. Loss on disposal of plant assets. k. Retirement of bonds. Instructions Indicate where each item should be presented in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, or significant noncash investing and financing activity. Prepare journal entry and determine effect on cash flows.

E12.2 (LO 1), C An analysis of comparative balance sheets, the current year's income statement, and the general ledger accounts of Hailey Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary. a. Exchange of land for patent. b. Sale of building at book value. c. Payment of dividends. d. Depreciation of plant assets. e. Conversion of bonds into common stock. f. Issuance of capital stock. g. Amortization of patent. h. Issuance of bonds for land. i. Purchase of land. j. Loss on disposal of plant assets. k. Retirement of bonds. Instructions Indicate where each item should be presented in the statement of cash flows (indirect method) using these four major classifications: operating activity (that is, the item would be listed among the adjustments to net income to determine net cash provided by operating activities under the indirect method), investing activity, financing activity, or significant noncash investing and financing activity. Prepare journal entry and determine effect on cash flows.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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