B Exercise 2 Dredd Company has begun a worksheet for preparing a statement of cash flows. The following additional information is provided: 1. Cash dividends of $8,000 were paid during the year. 2. Land which originally cost $60,000 was sold for $52,000. 3. Common stock was issued at par value for cash. Instructions From the completed worksheet for Dredd Company, prepare a Statement of Cash Flow Balance Sheet Accounts Debits Cash Accounts receivable (net) Inventory Land Equipment Total Credits Accounts payable Bonds payable Accumulated depreciation- equipment Common stock Retained earnings Total DREDD COMPANY Worksheet Statement of Cash Flows For the Year Ended December 31, 2020 Balance 12/31/19 30,000 40,000 90,000 60,000 131,000 351,000 15,000 25,000 81,000 170,000 60,000 351,000 Reconciling Items Debits (k) 30,000 14,000 d) 22,000 (h) 11,000 (e) 5,000 (i) 15,000 Credits (g) 60,000 (f) 15,000 (j) 10,000 (b) 8,000 (a) 20,000 Balance 12/31/20 60,000 54,000 112,000 -0- 142,000 368,000 10,000 10,000 96,000 180,000 72,000 368.000 Probl Prepa a) C 5) C luti

Exercise 2 Dredd Company has begun a worksheet for preparing a statement of cash flows. The following additional information is provided: 1. Cash dividends of $8,000 were paid during the year. 2. Land which originally cost $60,000 was sold for $52,000 3 Common stock was issued at par value for cash. Instructions From the completed worksheet for Dredd Company, prepare a Statement of Cash Flow DREDD COMPANY Worksheet Statement of Cash Flows For the Year Ended December 31, 2020 Reconciling Items Credits Probl Prepa a) C 5) C yw Balance 12/31/20 60,000 luti Balance Balance Sheet Accounts Debits 12/31/19 Debits Cash 30,000 (k) 30,000 Accounts receivable (net) 40,000 (c) 14,000 54,000 Inventory 90,000 (d) 22,000 112,000 Land 60,000 (g) 60,000 -0- Equipment 131.000 (h) 11,000 Total 351.000 142.000 368,000 Credits Accounts payable 15,000 (e) 5,000 10,000 Bonds payable 25,000 (0) 15,000 10,000 Accumulated depreciation- equipment 81,000 (f) 15,000 96,000 Common stock 170,000 () 10,000 180,000 Retained earnings 60.000 (b) 8,000 (a) 20,000 72,000 Total 351.000 368,000