The records of Koop Co. provided the following information for the year ended 31 December 20X8: Additional
Question:
The records of Koop Co. provided the following information for the year ended 31 December 20X8:
Additional information:
a. Sold equipment for cash (cost, $30,000; accumulated depreciation, $18,000).
b. Purchased land, $40,000 cash.
c. Acquired land for $42,000 and issued common shares as payment in full.
d. Acquired equipment, cost $32,000; issued a $32,000, 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 by ASPE.
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick