Effect of transactions on cash flows OBJ. 1 State the effect (cash receipt or payment and amount)
Question:
Effect of transactions on cash flows OBJ. 1 State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:
a. Retired $500,000 of bonds, on which there was $5,000 of unamortized discount, for
$525,000.
b. Sold 6,000 shares of $20 par common stock for $30 per share.
c. Sold equipment with a book value of $98,200 for $117,500.
d. Purchased land for $322,000 cash.
e. Purchased a building by paying $75,000 cash and issuing a $62,500 mortgage note payable.
f. Sold a new issue of $300,000 of bonds at 101.
g. Purchased 2,500 shares of $40 par common stock as treasury stock at $50 per share.
h. Paid dividends of $2.00 per share. There were 50,000 shares issued and 10,000 shares of treasury stock.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9781305267831,9781305267848
13th Edition
Authors: Carl S. Warren , James M. Reeve , Jonathan Duchac