Describe the actual transactions

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Reference no: EM131028957

Problem 1

Use the information in the following table to successfully fulfill requirement one listed below:

Acquisition of Equipment = $275,000

Acquisition of Apartment building =S300,000

Dividends paid=10,000

Issuance of bonds payable =170,000

Decrease in Salaries Payable=51000

Amortization of discount on bonds payable =53000

Decrease in Accounts Payable=15,000

Proceeds from the Sale of Land=100,000

Decrease In Inventories=$8,000

Depreciation Expense=25,000

Decrease in Accounts Receivables=5,000

Monies paid to retire bonds=120,000

Decrease in Deferred income taxes=$7000

Loss on sale of land=20,000

Net Income=250,000

Cash at the end of year=700,000

Requirements:

Prepare the statement of cash flows using the above information and assuming the company name is Supier Company and the year ended December 31, 2012.

Problem 2

The statement of cash flows only represents the actual cash flows from operating, investing and financing activities. There are specific non-cash transactions that are left out from the body of the statement.

Requirements:

Briefly describe the type of items that are not included in the body of the statement of cash flows, describe the actual transactions and tell where the transaction will then be disclosed.

Reference no: EM131028957

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