Laurent AG had these transactions during 2020. a. Issued CHF50,000 par value ordinary shares for cash. b.

Question:

Laurent AG had these transactions during 2020.

a. Issued CHF50,000 par value ordinary shares for cash.
b. Purchased a machine for CHF30,000, giving a long-term note in exchange.
c. Issued CHF200,000 par value ordinary shares to purchase land worth CHF200,000.
d. Declared and paid a cash dividend of CHF18,000.
e. Sold a long-term investment with a cost of CHF15,000 for CHF15,000 cash.
f. Collected CHF16,000 of accounts receivable.
g. Paid CHF18,000 on accounts payable.

Instructions
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or non-cash investing and financing activities.

Dividend
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... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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