The three accounts shown below appear in the general ledger of Halo Corp. during 2021.

Instructions

From the postings in the accounts, indicate how the information is reported on a cash flow statement using the indirect method. The loss on disposal of equipment was $7,000 and the cash dividends were paid.

Transcribed Image Text:

Equipment Date Debit Credit Balance Jan. 1 Balance July 31 Purchase of equipment Nov. 10 Cost of equipment sold 160,000 70,000 230,000 49,000 181,000 Accumulated Depreciation-Equipment Date Debit Credit Balance Jan. 1 Balance Nov. 10 Accumulated depreciation on equipment sold Dec. 31 Depreciation for year 71,000 30,000 41,000 28,000 69,000 Retained Earnings Date Debit Credit Balance Jan. 1 Balance 105,000 Aug. 23 Dividends (cash) Dec. 31 Profit 14,000 91,000 77,000 168,000