ACC 560 MART Education Terms/acc560mart.com ACC 560 MART Education Terms/acc560mart.com | Page 56

Nov. 10
49,000

Cost of equipment sold
234,000

Accumulated Depreciation—Equipment
Date
Credit
Jan. 1
71,000

Debit
Balance
Balance

Nov. 10
30,000

Accumulated depreciation on equipment sold
41,000

Dec. 31
28,000

Depreciation for year
69,000

Retained Earnings
Date
Credit

Debit
Balance

Jan. 1
105,000

Balance

Aug. 23
91,000

Dividends (cash)

Dec. 31
77,000

Net income
168,000

14,000

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.