Oriole Inc. is a private company reporting under ASPE. The following selected account balances were reported in Oriole Inc.’s financial statements at year end: 2021 2020 Cash $ 18,300 $ 8,200 Buildings 831,000 729,000 Equipment 391,000 340,200 Land 89,000 48,000 Accumulated depreciation—buildings 302,000 285,500 Accumulated depreciation—equipment 119,000 89,000 Dividends payable 5,950 2,400 Mortgage payable 542,600 582,600 Notes payable 337,000 306,000 Common shares: 5,340 shares in 2021; 3,940 in 2020 536,000 407,000 Retained earnings 195,000 96,000 Cash dividends declared 22,000 7,600 Depreciation expense—buildings 23,000 39,700 Depreciation expense—equipment 47,205 25,350 Gain on sale of equipment 840 0 Loss on sale of building 8,300 0 Interest expense 47,650 43,550 Additional information: 1. Purchased $72,000 of equipment for $8,800 cash and a note payable for the remainder. 2. Equipment was also sold during the year. 3. Sold a building that originally cost $47,000. 4. Used cash to purchase land and a building. 5. Mortgage payments and notes payable payments included interest and principal amounts. 6. Common shares were issued for cash. Calculate the cash operating activities. (Hint: Using the cash balances provided, calculate increase or decrease in cash first.) Calculate the cash operating activities. (Hint: Using the cash balances provided, calculate increase or decrease in cash first.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

See similar textbooks

Related questions

Question

Oriole Inc. is a private company reporting under ASPE. The following selected account balances were reported in Oriole Inc.’s financial statements at year end:

	2021	2020
Cash	$ 18,300	$ 8,200
Buildings	831,000	729,000
Equipment	391,000	340,200
Land	89,000	48,000
Accumulated depreciation—buildings	302,000	285,500
Accumulated depreciation—equipment	119,000	89,000
Dividends payable	5,950	2,400
Mortgage payable	542,600	582,600
Notes payable	337,000	306,000
Common shares: 5,340 shares in 2021; 3,940 in 2020	536,000	407,000
Retained earnings	195,000	96,000
Cash dividends declared	22,000	7,600
Depreciation expense—buildings	23,000	39,700
Depreciation expense—equipment	47,205	25,350
Gain on sale of equipment	840	0
Loss on sale of building	8,300	0
Interest expense	47,650	43,550

Additional information:
1.		Purchased $72,000 of equipment for $8,800 cash and a note payable for the remainder.
2.		Equipment was also sold during the year.
3.		Sold a building that originally cost $47,000.
4.		Used cash to purchase land and a building.
5.		Mortgage payments and notes payable payments included interest and principal amounts.
6.		Common shares were issued for cash.

Calculate the cash operating activities. (Hint: Using the cash balances provided, calculate increase or decrease in cash first.) Calculate the cash operating activities. (Hint: Using the cash balances provided, calculate increase or decrease in cash first.)

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.