Date Credit
Balance
Debit
Nov. 10 |
Accumulated depreciation on equipment sold |
30,000 |
41,000 |
Dec. |
31 |
Depreciation for year |
28,000 |
|
69,000 |
Retained Earnings
Date Credit
Balance
Debit
Jan. 1 Balance 105,000
Aug. |
23 |
Dividends( cash) |
14,000 |
91,000 |
|
|
|
Dec. |
31 |
Net income |
77,000 |
|
168,000 |
Instructions
From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of equipment was $ 7,000.( Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash of $ 53,000.