Select Transactions of June Bowen Inc

question 45

Essay

Select transactions of June Bowen Inc.(JBI)are listed below.JBI uses the indirect method to determine cash flows from operating activities.
1.JBI amortizes $12,000 of the discount on bonds payable.
2.At year-end JBI increases its allowance for bad debts by $18,000.
3.JBI's income tax expense totaled $50,000.Its income tax payable account increased $5,000,while its deferred income tax liability account decreased $8,000.
4.JBI makes payments of $25,000 on an operating lease.
5.JBI declares and distributes a stock dividend valued at $33,000.
6.JBI declares a cash dividend of $30,000.The dividends payable account increases $10,000.
7.JBI sells a held-to-maturity investment for $28,000.The investment's amortized cost is $20,000.
Required:
Discuss how the activities listed above would be reported in the statement of cash flows.For items with multiple reporting options,identify all available options.For items not reported on the statement of cash flows,indicate the disclosure requirements,if any.

Grasp the complexities of accounting for contracts under IFRS when cost estimation is challenging.

Understand the installment method of revenue recognition and its impact on deferred and realized gross profit.

Familiarize with recent developments in revenue recognition standards and their implications on accounting practices.

Understand how to compute the contribution margin ratio and its significance in assessing a product's profitability.

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