State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually,

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State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:
a. Sold equipment with a book value of $78,000 for $94,000.
b. Sold a new issue of $250,000 of bonds at 102.
c. Retired $400,000 of bonds, on which there was $4,000 of unamortized discount, for $475,000.
d. Purchased 3,000 shares of $30 par common stock as treasury stock at $40 per share.
e. Sold 4,000 shares of $25 par common stock for $50 per share.
f. Paid dividends of $1.50 per share. There were 40,000 shares issued and 5,000 shares of treasury stock.
g. Purchased land for $287,000 cash.
h. Purchased a building by paying $60,000 cash and issuing a $50,000 mortgage note payable.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Corporate Financial Accounting

ISBN: 978-1133952411

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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