Question

Reporting Stockholders' Equity Items on Statement of Cash Flows On the basis of the following stockholders' equity accounts, indicate the items, exclusive of net income, to be reported on the statement of cash flows. There were no unpaid dividends at either the beginning or the end of the year. ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 700,000 Jan. 1 Apr. 2 June 30 Balance, 35,000 shares 8,750 shares issued for cash 1,000-share stock dividend 175,000 875,000 20,000 895,000 ACCOUNT Paid-In Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Debit Credit Date Item Debit Credit Balance 70,000 Jan. 1 Apr. 2 June 30 315,000 8,750 shares issued for cash Stock dividend 245,000 15,000 330,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 581,000 June 30 Stock dividend 35,000 546,000 Cash dividend 66,800 479,200 Dec. 31 Net income 418,300 897,500 If an amount is not reported on the statement of cash flows, enter in "o" in the Amount column. Dec.

Answer 1

Item	Section of statement of cash flows	Added or deducted	Amount
Sale of common Stock	Financing activities section	Added	420000
Cash dividend	Financing activities section	Deducted	-66800
Stock dividend	Not reported on statement of cash flows	not applicable	0