The accounts below appear in the ledger of Anita Baker Company. Retained Earnings Dr. Cr. Bal. Jan. 1, 2020 Credit Balance $ 42,000 Aug. 15 Dividends (cash) $15,000 27,000 Dec. 31 Net Income for 2020 $40,000 67,000 Equipment Dr. Cr. Bal. Jan. 1, 2020 Debit Balance $140,000 Aug. 3 Purchase of Equipment $62,000 202,000 Sept. 10 Cost of Equipment Constructed 48,000 250,000 Nov. 15 Equipment Sold $56,000 194,000 Accumulated Depreciation—Equipment Dr. Cr. Bal. Jan. 1, 2020 Credit Balance $ 84,000 Apr. 8 Major Repairs $21,000 63,000 Nov. 15 Accum. Depreciation on Equipment Sold 25,200 37,800 Dec. 31 Depreciation for 2020 $16,800 54,600 Instructions From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800.
The accounts below appear in the ledger of Anita Baker Company. Retained Earnings Dr. Cr. Bal. Jan. 1, 2020 Credit Balance $ 42,000 Aug. 15 Dividends (cash) $15,000 27,000 Dec. 31 Net Income for 2020 $40,000 67,000 Equipment Dr. Cr. Bal. Jan. 1, 2020 Debit Balance $140,000 Aug. 3 Purchase of Equipment $62,000 202,000 Sept. 10 Cost of Equipment Constructed 48,000 250,000 Nov. 15 Equipment Sold $56,000 194,000 Accumulated Depreciation—Equipment Dr. Cr. Bal. Jan. 1, 2020 Credit Balance $ 84,000 Apr. 8 Major Repairs $21,000 63,000 Nov. 15 Accum. Depreciation on Equipment Sold 25,200 37,800 Dec. 31 Depreciation for 2020 $16,800 54,600 Instructions From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter1: The Role Of Accounting In Business
Section: Chapter Questions
Problem 1.3.1P: Income statement, retained earnings statement, and balance sheet The following financial data were...
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Question
The accounts below appear in the ledger of Anita Baker Company.
| Dr. | Cr. | Bal. | ||
| Jan. 1, 2020 | Credit Balance | $ 42,000 | ||
| Aug. 15 | Dividends (cash) | $15,000 | 27,000 | |
| Dec. 31 | Net Income for 2020 | $40,000 | 67,000 | |
| Equipment | Dr. | Cr. | Bal. | |
| Jan. 1, 2020 | Debit Balance | $140,000 | ||
| Aug. 3 | Purchase of Equipment | $62,000 | 202,000 | |
| Sept. 10 | Cost of Equipment Constructed | 48,000 | 250,000 | |
| Nov. 15 | Equipment Sold | $56,000 | 194,000 | |
Equipment |
Dr. | Cr. | Bal. | |
| Jan. 1, 2020 | Credit Balance | $ 84,000 | ||
| Apr. 8 | Major Repairs | $21,000 | 63,000 | |
| Nov. 15 | Accum. Depreciation on Equipment Sold |
25,200 | 37,800 | |
| Dec. 31 | Depreciation for 2020 | $16,800 | 54,600 |
Instructions
From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800.
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