# E13-3. Cushenberry Corporation had the following transactions, assignment help

MUST BE IN EXCEL

Due Week 9 and worth 50 points

Directions: Answer the following questions on a separate Microsoft Word or Excel document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in Blackboard.

Exercises

E13-3. Cushenberry Corporation had the following transactions.

⦁ Sold land (cost \$12,000) for \$15,000.
⦁ Issued common stock at par for \$20,000.
⦁ Recorded depreciation on buildings for \$17,000.
⦁ Paid salaries of \$9,000.
⦁ Issued 1,000 shares of \$1 par value common stock for equipment worth \$8,000.
⦁ Sold equipment (cost \$10,000, accumulated depreciation \$7,000) for \$1,200.

Instructions
For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash ﬂows using the indirect method.

E13-4. Gutierrez Company reported net income of \$225,000 for 2015. Gutierrez also reported depreciation expense of \$45,000 and a loss of \$5,000 on the disposal of equipment. The comparative balance sheet shows a decrease in accounts receivable of \$15,000 for the year, a \$17,000 increase in accounts payable, and a \$4,000 decrease in prepaid expenses.

Instructions
Prepare the operating activities section of the statement of cash ﬂows for 2015. Use the indirect method.

Problems

P13-3A. The income statement of Whitlock Company is presented here.

⦁ Accounts receivable increased \$200,000 during the year, and inventory decreased \$500,000.
⦁ Prepaid expenses increased \$150,000 during the year.
⦁ Accounts payable to suppliers of merchandise decreased \$340,000 during the year.
⦁ Accrued expenses payable decreased \$100,000 during the year.
⦁ Operating expenses include depreciation expense of \$70,000.

Instructions
Prepare the operating activities section of the statement of cash ﬂows for the year ended November 30, 2015, for Whitlock Company, using the indirect method.

P13-7A. Presented below are the ﬁnancial statements of Nosker Company.