For the year ended December 30th, the T accounts for plant assets and accumulated depreciation of KANEKO TRADING, CO. are as follows: PLANT ASSETS+ ACCUMULATED DEPRECIATION Beginning Balance 260,000 Disposals 92,000 Disposals 58,800 Beginning Balance. 138,000 Purchases 134,400 Depreciation 40,800 Ending Balance 302,400 Ending Balance 120,000 In addition, KANEKO TRADING, CO’ s Income statement shows a gain on sales of plant assets by 17,600 Task required: Compute the amounts to be shown as cash flows from investing activities (assuming purchases and sales were for cash) and show how they are to appear on the statement of cash flows
working | T accounts | |||
Plant | ||||
beg bal | 260000 | Diposals | 92000 | |
Purchases | 134400 | |||
ending bal | 302400 | |||
Accumulated Depreciation | ||||
Plant (138000+40800-120000) | 58800 | Beg bal | 138000 | |
Dep | 40800 | |||
Ending bal | 120000 | |||
answer | ||||
Statement of cash flow | ||||
Cash flow from Investing Activities | ||||
Purchase of plant | ($134,400) | |||
Sale of plant | $50,800 | |||
Book value (92000-58800)+ gain 17600 | ||||
Net cash used in investing activities | ($83,600) | |||
If any doubt please comment |
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