Several transactions entered into by Travis Retail during 2018 follow: 1. Received $50,000 for wine previously sold

Question:

Several transactions entered into by Travis Retail during 2018 follow:
1. Received $50,000 for wine previously sold on account.
2. Paid $55,000 in salaries and wages.
3. Sold a building for $100,000. The building had cost $170,000, and the related accumulated depreciation at the time of sale was $55,000.
4. Declared and paid a cash of $70,000.
5. Repurchased 10,000 shares of outstanding at $50 per share.
6. Purchased a two-year, $100,000 fire and storm insurance policy on June 30.
7. Purchased some equipment in exchange for 1,000 shares of common stock. The stock was currently selling for $75 per share.
8. Purchased $500,000 in long-term investments.
9. Issued $200,000 bonds. The bonds were sold at 101.
10. Owed $30,000 in rent as of December 31.

REQUIRED:
Record each transaction on a chart like the following. Classify the sections of the statement of cash flows as a cash flow from operating, investing, or financing activities. Transaction (1) is done as an example.

Effect on Cash Explanation Section of Statement Operating Transaction Operations is defined in terms of 1. +50,000 inven

Common Stock
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A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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