The three accounts shown below appear in the general ledger of Chaudry NV during 2020.

Instructions

From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of plant assets was €5,000. Cost of equipment constructed is reported in the investing activities section as a decrease in cash of €53,000.

Transcribed Image Text:

Equipment Debit Credit Date Balance 160,000 230,000 283,000 234,000 Jan. Balance July 31 Sept. 2 Purchase of equipment Cost of equipment constructed Cost of equipment sold 70,000 53,000 49,000 Nov. 10 Accumulated Depreciation–Equipment Date Debit Credit Balance 71,000 Jan. Balance Accumulated depreciation on equipment sold Depreciation for year Nov. 10 28,000 43,000 66,000 Dec. 31 23,000 Retained Earnings Date Debit Credit Balance Jan. 1 Balance 105,000 88,000 155,000 Aug. 23 Dec. 31 Dividends (cash) 17,000 Net income 67,000