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Additional Information on Current Year Transactions a. Purchased equipment for $55,000 cash. ...

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Accounting

Additional Information on Current Year Transactions
a. Purchased equipment for $55,000 cash.
b. Issued 34,000 shares of common stock for $5 cash per share.
c. Declared and pald $89,640 in cash dividends.
General Journal tab - Reconstruct the entries to summarize the activity between December 31, prior year and December
31, current year.
Direct Method tab - Prepare the Statement of Cash flows for the year ended December 31, current year using the direct
method.
Indirect Method tab - Prepare the reconciliation to the indirect method. Clancy Corporation's current year income statement, comparative balance sheets, and additional information
follow. For the year,
(1) all sales are credit sales,
(2) all credits to Accounts Recelvable reflect cash recelpts from customers,
(3) all purchases of inventory are on credit,
(4) all debits to Accounts Payable reflect cash payments for inventory,
(5) Other Expenses are all cash expenses, and
(6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.
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