Each of the following items must be considered in preparing a statement of cash flows. Indicate where

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Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reported in the statement, if at all. Assume that net income is reported as $90,000.

(a) Accounts receivable increased from $34,000 to $39,000 from the beginning to the end of the year.

(b) During the year, 10,000 shares of preferred stock with a par value of $100 a share were issued at $115 per share.

(c) Depreciation expense amounted to $14,000, and bond premium amortization amounted to $5,000.

(d) Land increased from $10,000 to $30,000.

Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Intermediate Accounting

ISBN: 978-0470423684

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

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