Homework Assignment 4
McDaniel Corporation manufactures surveying equipment. Journalize the entries to record the following selected equity investment transactions completed by McDaniel during 2013:
February 26 April 16 June 18 August 19
Purchased for cash 1,050 shares of Demon Inc. stock for $73 per share plus a $50 brokerage commission.
Received dividends of $0.47 per share on Devon Inc. stock.
Received dividends of $0.38 per share on Demon Inc. stock.
Purchased 450 shares of Demon Inc. stock for $68 per share plus a $45 brokerage fee.
Sold 1,220 shares of Demon Inc. stock for $75 per share less a $180 brokerage commission. McDaniel assumes that the first investments purchased are the first investments sold.
Homework Assignment 5 ‐ June 2014
The net income reported on the income statement for the current year was $180,000. Depreciation recorded on equipment and a building amounted to $67,500 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
|End of year||Beginning of year|
- Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method.
- If the direct method had been used, would the net cash flow from operating activities have been the same? Explain.
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