The accounts below appear in the ledger of Anita Baker Company. ...
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Accounting
The accounts below appear in the ledger of Anita Baker Company.
Retained Earnings
Dr.
Cr.
Bal.
Jan. 1, 2017
Credit Balance
$42,000
Aug. 15
Dividends (cash)
$15,000
27,000
Dec. 31
Net Income for 2017
$40,000
67,000
Equipment
Dr.
Cr.
Bal.
Jan. 1, 2017
Debit Balance
$140,000
Aug. 3
Purchase of Equipment
$62,000
202,000
Sept. 10
Cost of Equipment Constructed
48,000
250,000
Nov. 15
Equipment Sold
$56,000
194,000
Accumulated DepreciationEquipment
Dr.
Cr.
Bal.
Jan. 1, 2017
Credit Balance
$84,000
Apr. 8
Major Repairs
$21,000
63,000
Nov. 15
Accum. Depreciation on Equipment Sold
25,200
37,800
Dec. 31
Depreciation for 2017
$16,800
54,600
From the postings in the accounts above, indicate how the information is reported on a statement of cash flows by preparing a partial statement of cash flows using the indirect method. The loss on sale of equipment (November 15) was $5,800. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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