E23-2B (Lol,2) (Statement Presentation of Transactions-Indirect Method) Each of

Question

E23-2B (Lol,2) (Statement Presentation of Transactions-Indirect Method) Each of the following items must be consid- ered in preparing a statement of cash flows (indirect method) for Duke Enterprises (a) During the year, 50,000 shares of preferred stock with a par value of $100 a share were issued for $101 a share. (b) During the year, treasury stock costing $123,000 was sold. (c) Equipment that had cost $70,000 2 years before and was being depreciated on a straight-line basis over 6 years with a $10,000 estimated scrap value was sold for $25,000. (d) Goodwill impairment was $500,000. e Warranty-related payments of $83,600 were charged against accrued warranty expenses. (f) 6-month US. Treasury bills were sold for $210,000. The company uses a cash and cash equivalent basis for its cash flow statement. g) The company issued $600,000 in bonds payable to acquire land. (h) The company reported net income for the year of $176,000. Depreciation amounted to $69,000, and a loss of $45,000 was reported on the sale of an equity investment. Instructions State where each item is to be shown in the statement of cash flows, if at all.

Explanation / Answer

State where each item is to be shown in the statement of cash flows, if at all.

No Transaction statement of cash flow a During the year 50000 shares of preferred stock with a par value 100a share issued for $101 a share Financing activity b During the year treasury stock costing 123000 was sold financing activity c) equipment that had cost $70000 2 years before and was being depreciated on a straight line basis over 6 year with a 10000 estimated scrap value was sold for $25000 Investing activity d goodwill impairement was $500000 operating activity e Warranty related payment of $83000 were charged against accured warranty expenses operating activity f 6 month treasury bill were sold for $210000. the company uses a cash and cash equivalent basis for its cash flow statement operating activity g the company issued $600000 in bonds payable to acquire land non cash activity h the company reported net income for the year of $176000, depreciation amount to $69000 and a loss of $45000 was reported on the sale of an equity investment operating activity

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.