Exercise 12-7 The following three accounts appear in the general ledger of Cullumber Company during...
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Exercise 12-7 The following three accounts appear in the general ledger of Cullumber Company during 2019 Equipment Date Jan. Balance July 31 Prchase of equipment Sept. 2 Cost of equipment constructed Nov. 10 Cost of equipment sold Debit Credit Balance 158,000 226,000 277,000 48,000 229,000 68,000 51,000 Accumulated Depreciation-Equipment Date Jan. Balance Nov. 10 Accumulated depreciation on equipment sold 28,000 Dec. 31 Depreciation for year Debit Credit Balance 69,000 41,000 21,000 62,000 Retained Earnings Date Debit Credit Balance 104,000 89,000 65,000 154,000 Jan. Balance 15,000 Aug. 23 Dividends (cash) Dec. 31 Net income From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The loss on disposal of plant assets was $4,000. (Hint: Cost of equipment constructed is reported in the investing activities section as a decrease in cash o $51,000.) (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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