E10-24A

(Learning Objectives 2, 3: Account for issuance of stock; show how treasury stock transactions affect stockholders equity)Journalize the following transactions of Alameda Productions:

Jan	21	Issued 1,800 shares of $1.25 par common stock at $13 per share.
Jun	23	Purchased 500 shares of treasury stock at $15 per share.
Jul	12	Sold 400 shares of treasury stock at $22 per share.

What was the overall effect of these transactions on Alamedas stockholders equity?

E12-23A

(Learning Objective 4: Compute cash flows from operating activitiesdirect method) The accounting records of Best Pharmaceuticals, Inc., reveal the following:

Payment of salaries and wages	$32,000
Depreciation	23,000
Decrease in current liabilities	18,000
Increase in current assets other than cash	21,000
Payment of dividends	9,000
Collection of accounts receivable	95,000
Net income	$40,000
Payment of income tax	16,000
Collection of dividend revenue	12,000
Payment of interest	20,000
Cash sales	55,000
Gain on sale of land	7,000
Acquisition of land	25,000
Payment of accounts payable	50,000

Requirement

1. Compute cash flows from operating activities by the direct method. Also evaluate Bests operating cash flow. Give the reason for your evaluation.

E12-29B

(Learning Objective 3: Compute cash flows from operating activitiesindirect method) The accounting records of South Central Distributors, Inc., reveal the following:

Net income	$ 42,000
Collection of dividend revenue	7,100
Payment of interest	12,000
Sales revenue	307,000
Gain on sale of land	26,000
Acquisition of land	35,000
Depreciation	$ 6,000
Decrease in current liabilities	25,000
Increase in current assets other than cash	29,000
Payment of dividends	7,700
Payment of income tax	14,000

742743

Requirement

Compute cash flows from operating activities by the indirect method. Use the format of the operating activities section of Exhibit 12-6. Also evaluate the operating cash flow of South Central Distributors. Give the reason for your evaluation.