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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education