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Reporting Stockholders' Equity Items on Statement of Cash Flows

On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year.

ACCOUNT Common Stock, $20 par

ACCOUNT NO.

Balance

Date

Item

Debit

Credit

Debit

Credit

Jan.

1

Balance, 60,000 shares

1,200,000

Apr.

2

15,000 shares issued for cash

300,000

1,500,000

June

30

2,000-share stock dividend

40,000

1,540,000

ACCOUNT Paid-In Capital in Excess of Par-Common Stock

ACCOUNT NO.

Balance

Date

Item

Debit

Credit

Debit

Credit

Jan.

1

Balance

180,000

Apr.

2

15,000 shares issued for cash

450,000

630,000

June

30

Stock dividend

30,000

660,000

ACCOUNT Retained Earnings

ACCOUNT NO.

Balance

Date

Item

Debit

Credit

Debit

Credit

Jan.

1

Balance

996,000

June

30

Stock dividend

70,000

926,000

Dec.

30

Cash dividend

114,500

811,500

Dec.

31

Net income

717,100

1,528,600

If an amount is not reported on the statement of cash flows, leave the amount box blank.

Item	Section of Statement of Cash Flows	Added or Deducted	Amount
Sale of common stock	Investing activities sectionFinancing activities sectionNot reported on statement of cash flowsOperating activities section	AddedDeductedNot applicable	$fill in the blank 3
Cash dividend	Investing activities sectionFinancing activities sectionNot reported on statement of cash flowsOperating activities section	AddedDeductedNot applicable	$fill in the blank 6
Stock dividend	Investing activities sectionFinancing activities sectionNot reported on statement of cash flowsOperating activities section	AddedDeductedNot applicable	$fill in the blank 9

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