The three accounts shown below appear in the general ledger of Cullumber Corp. during 2021. Equipment Date
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The three accounts shown below appear in the general ledger of Cullumber Corp. during 2021.
Equipment | ||||||||
Date | Debit | Credit | Balance | |||||
Jan. 1 | Balance | 163,200 | ||||||
July 31 | Purchase of equipment | 71,400 | 234,600 | |||||
Nov. 10 | Cost of equipment sold | 50,000 | 184,600 | |||||
Accumulated Depreciation—Equipment | ||||||||
Date | Debit | Credit | Balance | |||||
Jan. 1 | Balance | 72,400 | ||||||
Nov. 10 | Accumulated depreciation on equipment sold | 30,600 | 41,800 | |||||
Dec. 31 | Depreciation for year | 28,600 | 70,400 | |||||
Retained Earnings | ||||||||
Date | Debit | Credit | Balance | |||||
Jan. 1 | Balance | 107,100 | ||||||
Aug. 23 | Dividends (cash) | 14,300 | 92,800 | |||||
Dec. 31 | Profit | 78,500 | 171,300 |
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 $7,100 and the cash dividends were paid.
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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