Using the following pictures for reference,
Generate a Statement of Cash Flow for Bonneau Company, and Include the Necessary Journal Entries.
For The Year Ended Decernber
The $ increase in dividends payable is not paid yet and does not go in the operating
activities section.
The journal entries to record a dividend declaration are to debit retained earnings and credit dividends payable, which is a currentliability account in the liabilities section of the balance sheet.
This noncash transaction shifts an amount from the shareholders' equity section to the liability section of the balance sheet. There is no impact on the statement of cash flow.
When dividends are paid, there is a cash outflow in the financingactivities section of the statement
of cash flow.
Additional Information
Investments were sald for Cash
Land and Equipment were purchased with cash
There were no disposals of equipment during the year
Stock was lssued for cash
