Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Peter Corporation reported the following transactions for 2019 1. Sold equipment for $7,000. The original cost was $15,000; the book value is $6,000 2. ussued

image text in transcribed
Peter Corporation reported the following transactions for 2019 1. Sold equipment for $7,000. The original cost was $15,000; the book value is $6,000 2. ussued 2,000 shares or \$5 par value common stock for $12 per share 3. Pald $3.000 for an insurance policy which goes into effect in january 2020 4. Recognired \$2,000 in interest expense on Dec 31, 2019 - to be paid on April 30, 2020 5. Received $8,000 as collections from customers for 2018 sales, and $18,000 for 2019 sales. 6. Reacquired 300 shares of its own common stock at $20 per share 7. feceived $2,000 in dividends on stock held as available for sale 8. Recorded depreciation expense for $5,000 9. Pald \$1,000 of dividends to common stockholders 10. Purchased equipment costing $65,000, by making a cash down payment of $20,000 and 51 gning a note for the remaining 545,000 . 11. Acquired a bulding with a market value of $250,000 by issuing 20,000 shares of common stock. 12. Paid salaries of $18,000 13. Cash recelved from sale of available for sale securities 56,000 14. Repaid a foan, which included $5,000 of the pnncipal and 51,000 in interest Feter Corporation uses the direct method for preparing the 2019 Statement of Cash Flows. The net cash flow from investing activities is: Select one: a. (37,000) b. {521,000} c(312,000) d. (3) 000 )

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: Crumbley D. Larry, Fenton Edmund D., Jr. Smith G. Stevenson

9th Edition

0808053221, 9780808053224

More Books

Students also viewed these Accounting questions