Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the 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.) (a) Net income is $340,000. (b) Cash dividends declared and paid totaled $112,000. (c) Equipment was purchased for $113,000. (d) Equipment that originally cost $46,000 and had accumulated depreciation of $36,800 was sold for $11,500.

Question

Abraham Valencia

Business

7 August, 09:49

Indicate in general journal form how the items below would be entered in a worksheet for the preparation of the 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.) (a) Net income is $340,000. (b) Cash dividends declared and paid totaled $112,000. (c) Equipment was purchased for $113,000. (d) Equipment that originally cost $46,000 and had accumulated depreciation of $36,800 was sold for $11,500.

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Crystal · Answer 1

a.

Cash flow Statement $340,000 (debit)

Net Income $340,000 (credit)

b.

Cash Dividend $112,000 (debit)

Cash flow Statement $112,000 (credit)

c.

Equipment $113,000 (debit)

Cash flow Statement $113,000 (credit)

d.

J1

Cash flow Statement $11,500 (debit)

Equipment $11,500 (credit)

J2

Profit of Loss $2,300 (debit)

Cash flow Statement $2,300 (credit)

Explanation:

a.

To record Net Income from Operating Activities

b.

To record cash outflow from Dividend Payout

c.

To record cost of Purchase of Equipment

d.

J1

To record proceeds from Sale of Equipment

J2

To record profit on sale of Equipment