The comparative balance sheets of ConnieJo Company, for Years 1 and 2 ended December 31, appear below in condensed form. The income statement for the current year is as follows: 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 sheets of ConnieJo Company, for Years 1 and 2 ended December 31, appear below in condensed form.​  The income statement for the current year is as follows:​  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 sheets of ConnieJo Company, for Years 1 and 2 ended December 31, appear below in condensed form.​  The income statement for the current year is as follows:​  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 Sheets of ConnieJo Company, for Years 1