FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Reporting stockholders' equity items on statement of cash flows
On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.
ACCOUNT Common Stock, $40 par
ACCOUNT NO.
Date
Item
January 1 Balance, 120,000 shares
April 2
30,000 shares issued for cash
June 30
5% stock dividend
Debit Credit
Balance
Debit
Balance
Credit
4,800,000
1,200,000
300,000
6,000,000
6,300,000
ACCOUNT Paid-In Capital in Excess of Par-Common Stockr ACCOUNT NO.
Date
Item
January 1 Balance
April 2
30,000 shares issued for cash
June 30
Stock dividend
Debit Credit
Balance
Debit
Balance
Credit
360,000
720,000
150,000
1,080,000
1,230,000
ACCOUNT Retained Earnings
ACCOUNT NO.
Date
Item
Debit
Credit
Balance
Debit
Balance
Credit
January 1
June 30
Balance
2,000,000
Stock dividend
December 30
Cash dividend
450,000
315,000
1,550,000
1,235,000
December 31
Net income
1,000,000
2,235,000
If an amount is not reported on the statement of cash flows, enter in "0" in the Amount column.
Item
Section of Statement of Cash Flows
Sale of common stock
Cash dividend
Stock dividend
Added or Deducted
Amount
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