Rachael Ray Company had the following transactions. 1. Sold land (cost 12,000) for 15,000. 2. Issued ordinary

Question:

Rachael Ray Company had the following transactions.
1. Sold land (cost £12,000) for £15,000.
2. Issued ordinary shares for £20,000.
3. Recorded depreciation of £17,000.
4. Paid salaries of £9,000.
5. Issued 1,000 shares of £1 ordinary shares for equipment worth £8,000.
6. Sold equipment (cost £10,000, accumulated depreciation £7,000) for £1,200.

Instructions
For each transaction above
(a) Prepare the journal entry
(b) Indicate how it would affect the statement of cash flows.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...