Several transactions entered into by Travis Retail during 1997 follow. 1. Received $50,000 for wine previously sold on account. 2. Paid $55,000 in wages. 3. Sold a building for $100,000. The building had cost $170,000, and the related accumulated depreciation at the time of sale was $55,000. 4. Declared and paid a cash dividend of $70,000. 5. Repurchased 10,000 shares of outstanding common stock at $50 per share. 6. Purchased a two-year $100,000 fire and storm insurance policy on June 30. 7. Purchased some equipment in exchange for 1,000 shares of common stock. The stock was currently selling for $75 per share. 8. Purchased $500,000 in equity securities considered to be long-term. 9. Issued $200,000 face value in bonds. The bonds were sold at 101. 10. Owed $30,000 in rent as of December 31. REQUIRED: Record each transaction on a chart like the following. Classify the sections of the statement of cash flows as a cash flow from operating, investing, or financing activities. Transaction (1) is done as an example. Chapter 14 The Statement of Cash Flows 723 P1 4-5 (A company’s cash management policy across time) (Deriving the cash effects ofinvesting transactions) PI 4-7 (Deriving the cash generatedfrom a common stock issuance) Transaction Effect on Cash Section of Statement Explanation !• +50,000 Operating Operations is defined in terms of inventory activity.