Question
16-3 16-02 Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually,
16-3 16-02
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 $340,000 of bonds, on which there was $3,400 of unamortized discount, for $354,000.
Sold 12,000 shares of $20 par common stock for $47 per share.
Sold equipment with a book value of $48,400 for $69,700.
Purchased land for $448,000 cash.
Purchased a building by paying $72,000 cash and issuing a $110,000 mortgage note payable.
Sold a new issue of $240,000 of bonds at 97.
Purchased 4,700 shares of $15 par common stock as treasury stock at $29 per share.
Paid dividends of $2.20 per share. There were 18,000 shares issued and 3,000 shares of treasury stock.
| Effect | Amount |
a. | Cash payment
| $-354,000 |
b. | Cash receipt
| $ |
c. | Cash receipt
| $ |
d. | Cash payment
| $ |
e. | Cash payment
| $ |
f. | Cash receipt
| $ |
g. | Cash payment
| $ |
h. | Cash payment
| $ |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started