The data below refers to Money Ltd. for the year ended December 31, 2014.
For each item, identify both the dollar amount and its classification—that is, whether it would appear as a positive or a negative adjustment to net income in the calculation of cash flow from operations (using the indirect method), or as some other inflow or outflow of cash.
1. Declared a $15,000 cash dividend; paid $12,000 during the year.
2. Sold, for $90,000 cash, land that had cost $75,000 two years earlier.
3. Sold for cash 2,000 shares for $6 a share.
4. Bought machinery for $24,000 in exchange for a note due in 18 months.
5. Bought a computer that had a fair value of $35,000 by giving in exchange real estate that had cost $15,000 in an earlier period.
6. Equipment depreciation, $18,000.
7. Issued for cash on December 31, 2014, a $250,000 10-year, 10% bond at an $18,000 discount.
8. Bought its own shares for $7,500 and immediately cancelled them.
9. Paid a lawyer $6,200 for services performed, billed, and recorded correctly in 2013.
10. Reported net income of $63,000 for the year ended December 31, 2014.

  • CreatedJanuary 08, 2015
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