E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information. Increase Selected balance sheet accounts 2020 2019 (Decrease) Assets Accounts receivable $154,000 $120,000 $34,000 Property, plant, and equipment 631,000 581,000 50,000 Accumulated depreciation (141,000) (106,000) (35,000)
E23.10B (L0 1,4) (Classification of Transactions) Following are selected balance sheet accounts of BioLazer Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information.
Increase
Selected balance sheet accounts 2020 2019 (Decrease)
Assets
Property, plant, and equipment 631,000 581,000 50,000
Accumulated depreciation (141,000) (106,000) (35,000)
Liabilities and stockholders’ equity
Bonds payable $ 95,000 $100,000 $ (5,000)
Dividends payable –0– 10,000 (10,000)
Common stock, $1 par 60,000 50,000 10,000
Additional paid-in capital 25,000 20,000 5,000
Retained earnings 340,000 261,000 79,000
Selected income statement information for the year ended December 31, 2020
Sales revenue $932,000
Depreciation 54,000
Loss on sale of equipment 8,000
Net income 90,000
Additional information:
1. During 2020, equipment costing $30,000 was sold for cash.
2. Accounts receivable relate to sales of merchandise.
3. During 2020, $15,000 of bonds payable were converted to common stock. There was no amortization of bond discount or premium.
Instructions
Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash
flows for the following items
(a) Payments for purchase of property, plant, and equipment.
(b) Proceeds from the sale of equipment.
(c) Cash dividends paid.
(d) Proceeds from bonds payable
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