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.