Following are selected balance sheet accounts of Shamrock Bros. Corp. at December 31, 2020 and...

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Accounting

Following are selected balance sheet accounts of Shamrock Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information.

Selected balance sheet accounts
Assets

2020

2019

Increase (Decrease)

Accounts receivable

$34,000 $24,100 $9,900

Property, plant, and equipment

278,500 249,400 29,100

Accumulated depreciationplant assets

(176,300 ) (168,400 ) (7,900 )
Liabilities and stockholders equity

2020

2019

Increase

Bonds payable

$ 49,000 $45,900 $3,100

Dividends payable

8,000 5,100 2,900

Common stock, $1 par

22,100 18,900 3,200

Additional paid-in capital

9,100 3,000 6,100

Retained earnings

104,600 90,600 14,000
Selected income statement information for the year ended December 31, 2020:

Sales revenue

$154,400

Depreciation

38,100

Gain on sale of equipment

14,700

Net income

30,900

Additional information:

1. During 2020, equipment costing $45,200 was sold for cash.
2. Accounts receivable relate to sales of merchandise.
3. During 2020, $20,100 of bonds payable were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.

image

Activity (a) Payments for purchase of property, plant, and equipment.

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