58) A truck cost $55,000 and had accumulated depreciation of $45,000 when it was sold for cash at a gain of $5,000. Proceeds from the sale of the truck are 1. $________ and are 2. a(n) ________ activity.
59) A building cost $550,000 and had accumulated depreciation of $450,000 when it was sold for cash at a loss of $30,000. Proceeds from the sale of the building are:
1. $________ and are 2. a(n) ________ activity.
60) Show the effect of each cash transaction on the statement of cash flows by putting a plus if the transaction results in a cash inflow or minus if a cash outflow in either the operating, investing or financing activity column:
Statement of Cash Flows' Activities:
Cash transactions:
Operating
Investing
Financing
1.
Proceeds from sale of equipment
2.
Cash received from customers
3.
Cash dividends paid to shareholders
4.
Cash paid to employees
5.
Interest payments
6.
Payment for new machinery
7.
Proceeds from borrowing
8.
Issuance of stock
9.
Cash paid for insurance
10.
Sales of land
61) Indicate whether each of the following items is either a cash inflow or outflow and in which section of the statement of cash flows it would be reported.
Item
Inflow or Outflow
Statement Section
1. Cash wages paid to employees
2. Loan proceeds received
3. Cash sale of used equipment
4. Interest paid on loan
5. Purchase of treasury stock
6. Payment of an account payable
7. Purchase of inventory
8. Issuance of stock
9. Purchase of equipment
10. Collection of an account receivable
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