Assignment Task: Use the adjusted trail balance, statement of retained earnings, multistep income statement, comparative Balance Sheets and the following additional information to prepare the Statement of Cash Flows for the month of January 2015.
Use the indirect method to prepare the operating activities section.
1. Issued 10,000 new shares of common stock when the stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents.
2. Purchased land with a cost $200,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference.
3. Purchased additional store equipment for $20,000 paying cash.
4. The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period.
5. Issued bonds with a face amount of $150,000 at 97.
6. Paid off the mortgage payable of $175,000.
7. The company repurchased 20,000 shares of its common stock on the open market for $9 per share.
8. The company reissued 10,000 of the treasury shares at a price of $18 per share.
9. Issued 1,500 shares of preferred stock at $105 per share.
10. Paid cash dividends of $35,000 to preferred and common stockholders.
Attachment:- Operating activities.rar