Effect of transactions on cash flows Obj. 1 State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:

a. Retired $500,000 of bonds, on which there was $4,000 of unamortized discount, for $510,000.

b. Sold 20,000 shares of $5 par common stock for $30 per share.

c. Sold equipment with a book value of $68,900 for $72,400.

d. Purchased land for $825,000 cash.

e. Purchased a building by paying $30,000 cash and issuing a $570,000 mortgage note payable.

f. Sold a new issue of $400,000 of bonds at 98.

g. Purchased 10,000 shares of $10 par common stock as treasury stock at $22.50 per share.

h. Paid dividends of $1.25 per share. There were 1,000,000 shares issued and 180,000 shares of treasury stock.

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