A long-term investment in bonds with a cost of $500,000 was sold for $600,000 cash. (a) What

Question:

A long-term investment in bonds with a cost of $500,000 was sold for $600,000 cash.

(a) What was the gain or loss on the sale?

(b) What was the effect of the transaction on cash flows?

(c) How would the transaction be reported on the statement of cash flows if cash flows from operating activities are reported by the indirect method?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 9781337913102

16th Edition

Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider

See More Books

Question Posted: Mar 15, 2022 01:05 AM

See More Questions

What determines the gain or loss on the sale of fixed assets?
How is the gain or loss on the sale of an operating asset calculated? Where would the Gain on Sale of Asset account appear on the financial statements?
A long-term investment in bonds with a cost of $60,000 was sold for $72,000 cash. (a) What was the gain or loss on the sale? (b) What was the effect of the transaction on cash flows? (c) How should...
The homogeneous rectangular block having dimensions a-1.93, b=2.75 as shown, and mass m, rests on the inclined plane which is hinged about a horizontal axis through O. Calculate the minimum value of...
State the three assumptions common to the different theories of oligopoly.
1. Describe the mechanisms that WorldComs management used to transfer profit from other time periods to inflate the current period. 2. Why did Arthur Andersen go along with each of these mechanisms?...
In what situation should a firm pay a stock dividend? AppendixLO1
For 2015, Silver Corporation (a calendar year business) incurred the following transactions: Taxable income$3,950,000 Accelerated depreciation on pre-1987 real property (in excess of straight-line...
Quest Conrad Company electronics to a single-ration Army has been very profitable over the years, management has been a and earings Recentes follow M Sales Variable costs Fred costs 5 200.000 120,000...
In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the organization who: turned 18...
Featherstone Inc. reported the following data: Net income $296,000 Depreciation expense 113,100 Gain on disposal of equipment 58,200 Decrease in accounts receivable 71,300 Decrease in accounts...
Paneous Corporations comparative balance sheet for current assets and liabilities was as follows: Adjust net income of $351,000 for changes in operating assets and liabilities to arrive at net cash...
The outer surface of a steel gear is to be hardened by increasing its carbon content; the carbon is to be supplied from an external carbon-rich atmosphere maintained at an elevated temperature. A...
460 V rms 3 phase full wave controlled rectifier feeds an inductive load. The supply voltage has a frequency of 50 Hz. If thyristors are considered ideal; a) Draw the voltage on the load when a = 25....
The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Garcon Company Pepper Company Finished goods inventory, beginning $14,000 $17,950 Work in process...
On September 22, 2024, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records...
A wound DC motor is connected in both a shunt and a series configuration. Assume generic resistance and inductance parameters Ra, Rf, La, Lf, let the field magnetization constant be kf and the...
Supermart Food Stores (SFS) has experienced net operating losses in its frozen food products line in the last few periods. Management believes that the store can improve its profitability if SFS...
Lahey Advertising Companys trial balance at December 31 shows Supplies $8,800 and Supplies Expense $0. On December 31, there are $1,100 of supplies on hand. Prepare the adjusting entry at December 31...
Dawson Companys balance sheet information at the end of 2019 and 2020 is as follows: Additional information: The company did not issue any common stock during 2020. Required : Next Level Fill in the...
PicsApart Arts, Inc., had earnings of $565,000 for the year. The company had 55,000 shares of common stock outstanding during the year and issued 23,000 shares of $50 par value preferred stock. The...
The following accounts and their balances appear in the ledger of Goodale Properties Inc. on June 30 of the current year: Common Stock, $45 par . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
Pressure Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended January 31, 20Y2: Retained earnings, February 1, 20Y1. . . . . . . . . . . . . . . . ....
question 6 Timely Inc. produces luxury bags. The budgeted sales and production for the next three months are as follows july. august september Sales, in units 1,115. 1229. 1302 Production. in units...
On May 12 Zimmer Corporation placed in service equipment (seven-year property) with a basis of $220,000. This was Zimmer's only asset acquired during the year. Calculate the maximum depreciation...
Power Manufacturing has equipment that it purchased 7 years ago for $2,550,000. The equipment was used for a project that was intended to last for 9 years and was being depreciated over the life of...

A long-term investment in bonds with a cost of $500,000 was sold for $600,000 cash. (a) What

Question:

Step by Step Answer:

a There is a gain on the sale since sale proceeds are higher t...View the full answer

Financial Accounting

Students also viewed these Business questions