Exercise 23-20 The transactions below took place during the year 2017. Show by j

Question

Exercise 23-20

The transactions below took place during the year 2017.

Show by journal entries the adjustments that would be made on a worksheet for a statement of cash flows. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

1. Convertible bonds payable with a par value of $301,500 were exchanged for unissued common stock with a par value of $301,500. The market price of both types of securities was par. 2. The net income for the year was $408,700. 3. Depreciation expense for the building was $88,300. 4. Some old office equipment was traded in on the purchase of some dissimilar office equipment, and the following entry was made.

Explanation / Answer

Statement of Cash Flows Particulars $ Net Income        4,08,700 Less Gain on Disposal of Plant Assets             -6,100 Add Depreciation            88,300 Less Dividend       -1,20,600 Total Impact on Cash Flow        3,70,300

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