The data below refers to Money Ltd. for the year ended December 31, 2014. Required For each
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For each item, identify both the dollar amount and its classification—that is, whether it would appear as a positive or a negative adjustment to net income in the calculation of cash flow from operations (using the indirect method), or as some other inflow or outflow of cash.
1. Declared a $15,000 cash dividend; paid $12,000 during the year.
2. Sold, for $90,000 cash, land that had cost $75,000 two years earlier.
3. Sold for cash 2,000 shares for $6 a share.
4. Bought machinery for $24,000 in exchange for a note due in 18 months.
5. Bought a computer that had a fair value of $35,000 by giving in exchange real estate that had cost $15,000 in an earlier period.
6. Equipment depreciation, $18,000.
7. Issued for cash on December 31, 2014, a $250,000 10-year, 10% bond at an $18,000 discount.
8. Bought its own shares for $7,500 and immediately cancelled them.
9. Paid a lawyer $6,200 for services performed, billed, and recorded correctly in 2013.
10. Reported net income of $63,000 for the year ended December 31, 2014.
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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