The management of Banciu Corporation provides you with the comparative analysis of changes in account balances between December 21, 2013, and December 31, 2014, appearing below.

Supplemental Information:
a. The following table presents a comparative analysis of retained earnings as of December
31, 2013, and December 31, 2014.

b. On December 10, 2014, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 2015.
c. Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.
d. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.
e. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 2014.
f. During 2014, Banciu wrote off accounts receivable totaling $3,600 as uncollectible.
g. During 2014, Banciu purchased $180,000 of securities that are being held for future plant expansion.

1. Prepare the entries (in general journal form) that would be entered into T-accounts needed to prepare a statement of cash flows from the data given. For example, the first entry would be

2. Prepare a statement of cash flows for Banciu Corporation for 2014. Use the indirect method for presenting cash flow fromoperations.

  • CreatedSeptember 10, 2014
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