16

Effect of Transactions on Cash Flows

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

Retired $230,000 of bonds, on which there was $2,300 of unamortized discount, for $239,000.

Sold 12,000 shares of $20 par common stock for $38 per share.

Sold equipment with a book value of $65,100 for $93,700.

Purchased land for $391,000 cash.

Purchased a building by paying $50,000 cash and issuing a $120,000 mortgage note payable.

Sold a new issue of $160,000 of bonds at 99.

Purchased 2,600 shares of $40 par common stock as treasury stock at $74 per share.

Paid dividends of $2.10 per share. There were 20,000 shares issued and 3,000 shares of treasury stock.

	Effect	Amount
a.		$
b.		$
c.		$
d.		$
e.		$
f.		$
g.		$
h.		$