Additional information related to 2021 are as follows: a. Equipment that had cost $11,100 and was 30% depreciated at time of disposal was sold for $2,500. b. $5,000 of the long-term note payable was paid by issuing common stock. c. Distributed cash dividends of $5,000 that was declared in 2020. d. On January 1, 2021, the building was completely destroyed by a flood. Insurance proceeds on the building were $33,200 (net of $4,000 taxes). e. Equity investments (ownership is less than 20% of total shares) were sold at $1,400 above their cost. No unrealized gains or losses were recorded in 2021. f. Cash and a long-term note for $16,000 were given for the acquisition of equipment. g. Interest of $2,000 and income taxes of $4,900 were paid in cash. Required: Use the indirect method to prepare a statement of cash flows for Sky Corporation.

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The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 Date A building that cost $182,160 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,038 and was permitted to keep all materials salvaged. 1/30 Machinery that was purchased in 2013 for $22,080 is sold for $4,002 cash, f.o.b. purchaser's plant. Freight of $414 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,420 in 2012. The gear is replaced at a cost of $2,760. The replacement does not extend the useful life of the machine but does make the machine more efficient. Prepare general journal entries for the…

Tamarisk Cole Inc. acquired the following assets in January of 2018. Equipment, estimated service life, 5 years; salvage value, $15,500   $546,500 Building, estimated service life, 30 years; no salvage value   $639,000 The equipment has been depreciated using the sum-of-the-years’-digits method for the first 3 years for financial reporting purposes. In 2021, the company decided to change the method of computing depreciation to the straight-line method for the equipment, but no change was made in the estimated service life or salvage value. It was also decided to change the total estimated service life of the building from 30 years to 40 years, with no change in the estimated salvage value. The building is depreciated on the straight-line method. (a)   Prepare the general journal entry to record depreciation expense for the equipment in 2021. (b)   Prepare the journal entry to record depreciation expense for the building in 2021. (Round answers to 0 decimal places,…