Class_27_Solns

Class_27_Solns - EXERCISE 23-18 Anita Baker Company...

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EXERCISE 23-18 Anita Baker Company Statement of Cash Flows (partial) For the Year Ended December 31, 2008 Cash flows from operating activities Net income $ 40,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $16,800 Loss on sale of equipment 5,800 22,600 Net cash provided by operating activities 62,600 Cash flows from investing activities Purchase of machinery (62,000) Sale of machinery [($56,000 – $25,200) – $5,800] 25,000 Extraordinary repairs on machinery (21,000) Cost of machinery constructed (48,00 0 ) Net cash used by investing activities (106,000) Cash flows from financing activities Payment of cash dividends (15,000 ) Decrease in cash (58,400) Cash, January 1, 2008 xxx Cash, December 31, 2008 $ xxx 1
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EXERCISE 23-20 1. Bonds Payable. ............................................. 300,000 Common Stock. .................................... 300,000 (Noncash financing activity) 2. Operating—Net income. ............................... 410,000 Retained Earnings. ............................... 410,000 3. Operating—Depreciation Expense. ............ 90,000 Accumulated Depreciation—Building 90,000 4. Accumulated Depreciation—Office Equipment. .................................................... 30,000 Office Equipment. ......................................... 10,000 Operating—Gain on Disposal of Plant Assets. ...................................... 6,000 Investing—Purchase of Office Equipment. .................................................... 34,000
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Class_27_Solns - EXERCISE 23-18 Anita Baker Company...

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