Question

The records of HKL Company provided the following information for the year ended 31 December 20X8:


Additional information:
a. Sold equipment for cash (cost, $ 15,000; accumulated depreciation, $ 9,000).
b. Purchased land, $ 20,000 cash.
c. Acquired land for $ 21,000 and issued common shares as payment in full.
d. Acquired equipment, cost $ 16,000; issued a $ 16,000, three- year, interest- bearing note payable.

Required:
Prepare the SCF, using the two- step indirect method. Analyze every account to ensure all changes are included. Assume unexplained changes are from logical sources. Include required note disclosure of non- cash transactions. Prepare separate disclosure of cash paid for interest and income tax, as is required byASPE.


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  • CreatedFebruary 17, 2015
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