Question: The following are selected balance sheet accounts of Strong Ltd

The following are selected balance sheet accounts of Strong Ltd. at December 31, 2010, and 2011, and the increases or decreases in each account from 2010 to 2011. Also presented is the selected income statement and other information for the year ended December 31, 2011.
Additional information:
1. During 2011, equipment costing $45,000 was sold for cash.
2. Accounts receivable relate to sales of merchandise.
3. During 2011, $20,000 of bonds payable were issued in exchange for property, plant, and equipment. All bonds were issued at par.
4. During the year, temporary investments accounted at FV-NI were sold for $22,000. Additional investments were purchased.
Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items, assuming Strong Ltd. follows ASPE:
(a) Cash received from customers
(b) Payments for purchases of property, plant, and equipment
(c) Proceeds from the sale of equipment
(d) Cash dividends paid
(e) Redemption of bonds payable
(f) Proceeds from the sale of investments
(g) Purchase of investments

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  • CreatedAugust 23, 2015
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