Select Transactions of Irene Accounting Inc

question 56

Essay

Select transactions of Irene Accounting Inc.(IAI)are listed below.IAI uses the indirect method to determine cash flows from operating activities.
1.IAI sells a held-to-maturity investment for $28,000.The investment's amortized cost is $20,000.
2.IAI's income tax expense totaled $30,000.Its income tax payable account increased $5,000,while its deferred income tax liability account decreased $18,000.
3.IAI declares a cash dividend of $3,000.The dividends payable account increases $1,000.
4.At year-end IAI increases its allowance for bad debts by $15,000.
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.

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Definitions:

Single-Strand Binding Proteins

Proteins that bind to single-stranded DNA during replication or repair processes, stabilizing the DNA.

DNA Primase

Enzyme that begins the process of DNA replication by synthesizing a short RNA segment complementary to the DNA template strand; this RNA strand is subsequently degraded and replaced with DNA.

ATP

For metabolism within cells, adenosine triphosphate acts as the vital molecule carrying energy.

Meselson And Stahl

Two scientists who conducted an experiment in 1958 proving that DNA replication is semi-conservative, where each of the two strands of the DNA helix serves as a template for the new strand.