Financial statements and notes for Knutsford Corporation are below: During 2020, Knutsford Corporation exchanged preferred shares for
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Question:
Financial statements and notes for Knutsford Corporation are below:
- During 2020, Knutsford Corporation exchanged preferred shares for land valued at $100,000. It also purchased a second tract of land for cash. During the year, convertible preferred shares with a book value of $18,000 were exchanged for common shares.
- One building was purchased during the year.
- Equipment with a cost of $46,000 and accumulated depreciation of $32,000 was sold. Knutsford also purchased equipment.
- Depreciation and amortization are included in operating expenses.
- Dividends were paid.
- Investment income includes dividend, interest, and gains. This includes an $18,000 unrealized gain.
- The increase in bonds payable represents bond discount amortization for the year.
Instructions
- Give statement of cash flows for 2020 using the indirect method.
- Prepare the operating activities section of the statement of cash flows for 2020 using the direct method.
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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