Professional Documents
Culture Documents
Ke-7
Nama :
Vicky Fadilla
Ahmad Daffa
E5-13
a. Issuance of ordinary shares. (Financing Activity)
b. Purchase of land and building. (Investing Activity)
c. Redemption of bonds. (Financing Activity)
d. Sale of equipment. (Investing Activity)
e. Depreciation of machinery. (Operating Activity- Add to Net Income)
f. Amortization of patent. (Operating Activity- Add to Net Income)
g. Issuance of bonds for plant assets. (Reported as significant Noncash Activity)
h. Payment of cash dividends. (Financing Activity)
i. Exchange of furniture for office equipment.
(Reported as significant noncash activity)
j. Purchase of treasury shares. (Financing activity)
k. Loss on sale of equipment. (Operating activity—add to net income)
l. Increase in accounts receivable during the year
(Operating activity—deduct from net income)
m. Decrease in accounts payable during the year.
(Operating activity—deduct from net income)
P5-6
(a)
LANSBURY INC.
Statement of Cash Flows
For the Year Ended December 31, 2021
Cash flows from operating activities
Net income...................................................................... $32,000
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation expense........................................... $11,000
Gain on sale of investments .............................. (3,400)
Increase in account receivable ($41,600 – $21,200)............................................. (20,400) (12,800)
Net cash provided by operating activities............ 19,200
Cash flows from investing activities
Sale of investments ..................................................... 15,000
Purchase of land........................................................... (18,000)
Net cash used by investing activities.................... (3,000)
Cash flows from financing activities
Issuance of ordinary shares ..................................... 20,000
Retirement of notes payable..................................... (16,000)
Payment of cash dividends....................................... (8,200)
Net cash used by financing activities.................... (4,200)
Net increase in cash........................................................... 12,000
Cash at beginning of year................................................. 20,000
Cash at end of year............................................................. $32,000
Noncash investing and financing activities were the purchase of land through issuance of $30,000 of bonds.
(b)
LANSBURY INC.
Statement of Financial Position
December 31, 2021
Assets
Investments $ 20,400 (1)
Plant assets (net) 70,000 (2)
Land 88,000 (3)
Accounts receivable 41,600
Cash 32,000
$ 252,000
Liabilities
Share capital—ordinary $120,000 (6)
Retained earnings 47,000 (7)
Long-term notes payable 25,000 (4)
Bonds payable 30,000 (5)
Accounts payable 30,000
$252,000