The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form: Additional data for the current year are as follows:
a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.
b) Bonds payable for $100,000 were retired by payment at their face amount.
c) 5,000 shares of common stock were issued at $15 for cash.
d) Cash dividends declared were paid $28,000.
e) All sales are on account.
Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

Question

The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form:   Additional data for the current year are as follows:
a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.
b) Bonds payable for $100,000 were retired by payment at their face amount.
c) 5,000 shares of common stock were issued at $15 for cash.
d) Cash dividends declared were paid $28,000.
e) All sales are on account.
Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

Quizplus · Accepted Answer

The Answer of The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form:   Additional data for the current year are as follows:
a) Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000.
b) Bonds payable for $100,000 were retired by payment at their face amount.
c) 5,000 shares of common stock were issued at $15 for cash.
d) Cash dividends declared were paid $28,000.
e) All sales are on account.
Prepare a statement of cash flows, using the direct method of reporting cash flows from operating activities.

The Comparative Balance Sheet of ConnieJo Company, for December 31