The following accounts appear in the ledger of Tanaka Limited, which uses IFRS, and has adopted the
Question:
The following accounts appear in the ledger of Tanaka Limited, which uses IFRS, and has adopted the policy of classifying dividends paid as operating activities:
Instructions
Show how the information posted in the accounts is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on disposal of equipment (November 15) was $5,800.
Transcribed Image Text:
Retained Earnings Dr. Cr. Bal. Jan. 1, 202o 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 Purchase of equipment 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 Nov. 15 Accumulated depreciation on equipment sold $25,200 58,800 Dec. 31 Depreciation for 2020 $16,800 75,600
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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