Mackey Ltd. reported the following selected balances:

Other Information:

1. There was a stock dividend of $25,000 on common shares and a cash dividend of $35,000.

2. Of the preferred shares, $50,000 were retired for cash, and $75,000 were converted into bonds payable.

3. Some common shares were issued for cash during the period.

4. Machinery with a net book value of $28,100 and an original cost of $48,650 was sold during the year at a loss of $1,050. Other machinery was purchased for cash.

5. Any unexplained change in the accounts should be assumed to be because of logical transactions.

Required:

List the items that would appear on the SCF for 20X4, considering the changes in the accounts above, and the other information. Organize your SCF appropriately (operating, investing, financing) and indicate whether each item is added or subtracted. Also list the non-cash transactions that would be separately disclosed. You have not been provided with enough information (cash, other assets, and liabilities) to balance the SCF to the change in cash.

Transcribed Image Text:

Account Title 20X4 20X3 Machinery $283,900 $172,450 Accumulated depreciation, machinery Bonds payable Common shares Preferred shares Retained earnings (107,400) (61,800) (150,000) (100,000) (390,000) (250,000) (25,000) (150,000) (233,750) (178,450) *Brackets denote a credit balance.