Indicate
in general journal form how the following items would be entered in a work
sheet to prepare the statement of cash flows.
(a)
Net income is $207,000.
(b)
Cash dividends declared (charged to retained earnings) and paid totalled
$60,000.
(c)
Equipment was purchased for $114,000.
(d)
Equipment that originally cost $40,000 and had accumulated depreciation of
$32,000 was sold for $13,000.
|
(a)
|
Operating—Net
Income..................
|
207,000
|
|
|
|
Retained Earnings..................
|
|
207,000
|
|
|
|
|
|
|
(b)
|
Retained
Earnings.....................
|
60,000
|
|
|
|
Financing—Cash Dividends...........
|
|
60,000
|
|
|
|
|
|
|
(c)
|
Equipment.............................
|
114,000
|
|
|
|
Investing—Purchase of Equipment....
|
|
114,000
|
|
|
|
|
|
|
(d)
|
Investing—Sale
of Equipment...........
|
13,000
|
|
|
|
Accumulated
Depreciation—Equipment....
|
32,000
|
|
|
|
Equipment..........................
|
|
40,000
|
|
|
Operating—Gain–Sale of Equipment...
|
|
5,000
|
