126) Minden Company purchased a piece of land in 2005 for $120,000. At the end of 2010 the land was appraised and valued at $200,000. In 2011, due to water quality issues Minden Company sold the land for $55,000. On its 2011 income statement and cash flow statement how should the company record this sale transaction.
127) Lindsay Limited had the following transactions during the year:
Proceeds from the sale of land $100,000
Gain on the sale of land $50,000
Proceeds from the issue of common shares $800,000
What was the cash from investing activities?
128) For each of the following items, identify the section of the cash flow statement where it would appear. Use (O) for operating activities, (I) for investing activities, (F) for financing activities, (NIF) for the schedule of noncash investing and financing activities, and (N) if the item does not appear anywhere on the cash flow statement. Assume the statement is prepared using the direct method.
________a.repurchase of shares
________b.sale of land for cash
________c.amortization of machinery
________d.conversion of bonds into common shares
________e.net income
________f.payment of cash dividends
________g.accrual of interest expense
________h.loss on sale of equipment
________i.issuance of preferred shares for cash
________j.purchase of stock as a long-term investment
________k.distribution of a 10% stock dividend
________l.sales on account
________m.payment of income taxes
________n.interest received on notes receivable
________o.collection of accounts receivable
129) Vegetable Inc. gathered the following data from its accounting records for the year ended December 31, 2010:
Net income$ 75,000
Increase in accounts payable25,600
Payments to suppliers172,500
Collections of accounts receivable201,700
Amortization expense16,900
Payment of income taxes23,500
Cash sales115,900
Repurchase of shares50,000
Declaration of stock dividend70,000
Loss on sale of capital assets8,900
Issuance of bonds payable600,000
Acquisition of equipment by issuing
long-term note payable60,000
Collection of dividend revenue4,500
Payment of salaries and wages101,200
Acquisition of land54,500
Payment of interest4,800
Interest received on investments1,300
Use the direct method to prepare the operating activities section of Vegetable Inc.'s 2010 cash flow statement.
130) As the accountant at Soil Test Corporation, you are responsible for preparing the cash flow statement. You have decided to prepare the statement using the direct method and have gathered together the following data from the accounting records:
Payments of long-term debt$220,000
Collections on accounts receivable215,600
Acquisition of equipment by issuing long-term
note payable90,000
Interest revenue15,600
Credit sales350,600
Loan collections48,200
Proceeds from sale of investments, not including
$4,200 gain38,200
Salary expense105,700
Cash payments to purchase capital assets72,000
Cost of goods sold425,000
Collection of interest revenue15,500
Payment of cash dividends36,200
Income tax expense and payments41,500
Proceeds from sale of capital assets, not including
$7,200 loss32,500
Cash receipt of dividend revenue20,200
Payment of salaries95,600
Amortization expense72,500
Cash sales208,000
Proceeds from issuance of common shares350,000
Loan to another company50,000
Interest expense and payments61,000
Bonds payable converted into common shares250,000
Payments to suppliers285,000
Cash balance: December 31, 201055,500
Cash balance: December 31, 2011122,400
Prepare the cash flow statement for the year ended December 31, 2011 using the direct method and including a schedule of noncash investing and financing activities, if necessary.