Augusta Company reported that its bonds with a face value of $62,000 and a carrying value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activities is:

Augusta Company reported that its bonds with a face value of $62,000 and a carrying value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activities is:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Related questions

Q: Using the following information, prepare a properly classified Statement of Financial Position…

A: The balance sheet shows the financial position of the company by recording all the assets,…

Q: A company reported that its bonds with a par value of $50,000 and a carrying value of $64,000 are…

A: Cash flows from financing activities would be an outflow as a result of cash flow from retired…

Q: State the effect (cash receipt or payment and amount) of each of the following transactions,…

A: Cash receipt means when cash is received or inflown into the business. Cash payments means when cash…

Q: A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are…

A: The cash flow from financing activity includes values of cash in and cash out from financing…

Q: The Stancil Corporation provided the following current information: Proceeds from…

A: Operating cash flow = $ 28,130

Q: Inc. has recorded the following transactions on its book for the year 2021. How much total Cash…

A: Solution: Financing activities involves changes in borrowing and owner equity.

Q: Jaup Nonprofit has a beginning balance in notes payable of $42,000 and an ending balance of $68,000.…

A: Lets understand the basics. Cashflow statement indicates how the cash inflow and outflow occures and…

Q: Kela corporation reports net income of 570,000 that includes depreciation expense of 77,000 also…

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: . mELON Inc. has recorded the following transactions on its book for the year 2021. How much total…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Net income for the year ended December 31, 20x1

A: Problem 1: Calculation of Closing Capital Closing Capital = Today Assets - Today Liabilities =…

Q: Napier Co. provided the following information on selected transactions during 2021: Purchase of land…

Q: McLaughlin Company issued common stock for proceeds of $558,000 during 2022. The company paid…

A: Cash flow from Financing activities includes the transactions relating to the loan/debt,…

Q: ABC Inc. is preparing its cash flow statement under the direct method and has provided this…

A: Operating activities section is very important section of cash flow statement which shows all cash…

Q: Star Company provided the following data for the preparation of statement of cash flows for the…

A: Statement of Cash Flow shows reasons in change in balance of Cash & Cash Equivalents under…

Q: Determine the amount of long-term debt for ABC Co. using the following balance sheet information:…

A: Long term debt = Total assets - liabilities other than long term debt

Q: Indigo Corporation engaged in the following cash transactions during 2020. Sale of land and building…

A: Cash flow from financing activities is a section of a company’s cash flow statement, which shows the…

Q: Consider the following information. Assets Equity and liabilities P500,000 Current debt P900,000…

A: To calculate the operating working capital, the non-interest-bearing current liabilities are…

Q: A corporation issued $2,000,000 of common stock in exchange for $2,000,000 of fixed assets. Where…

Q: Augusta Company reported that Its bonds with a face value of $62,000 and a carrylng value of $56,000…

A: Cash flow only includes cash activities and and a loss on retirement of bonds is a noncash activity.…

Q: Wainwright Corporation had the following activities in 2020. Sale of land $180,000. Purchase of…

A: Investing activities:

Q: A company reported that its bonds with a par value of $50,000 and a carrying value of $60,500 are…

A: Cash flow on retirement of bond On retirement of bond there is cash outflows from financing…

Q: Stansfield Corporation had the following activities in 2017.1. Payment of accounts payable $770,000.…

A: Statement of cash flows: Cash flow statement is also known as statement of cash flows. It is a…

Q: Star Company provided the following data for the preparation of statement of cash flows for the…

A: A cash flow statement is one of a company's financial statements that describes the cash flows into…

Q: The following summary transactions occurred during 2021 for Bluebonnet Bakers: Cash Received…

A: Cash flow statement is a financial statement that shows how changes in balance sheet accounts and…

Q: Napier Co. provided the following information on selected transactions during 2021: Purchase of land…

A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…

Q: BC Co. provided the following information on selected transactions during 2021: Proceeds from…

A: Lets understand the basics. Cashflow statement shows the cash inflow and cash outflow from the all…

Q: (30) Bonds with a face value of $270,000 are issued at 103. The statement of cash flows would report…

A: Cash flow from investing activities consists of cash inflows and cash outflows from investment…

Q: Issued 500 ordinary shares for 50,000.

A: Solution: total Cash Inflow from financing activities include cash transaction relating to the…

Q: A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of…

A: Cash flow statement provided information about the cash inflows and cash outflows of the…

Q: Using the following information, prepare a properly classified Statement of Financial Position in…

A: Total assets include current assets and non current assets. Total liabilities include current…

Q: Based on the following information, compute cash flows from financing activities under GAAP.Purchase…

A: Calculating cash flow from financing activities as per GAAP. We have, Cash Flow from Financing…

Q: A corporation issued $2000000 of 20-year bonds for cash at 98. How would the transaction be reported…

A: Cash flow statement is a financial statement which reports how a company raised or received cash and…

Q: XYZ Co. had the following activities in 2020: Issue of Bonds OMR 15000 Increase in receivables OMR…

A: The cash flow statement analyse the cash flow from various activities in the business.

Q: Bonita Company issued common stock for proceeds of $376000 during 2020. The company paid dividends…

A: Statement of cash flow includes following three activities: Operating activities Investing…

Q: Mountain Water Corp. issued a common stock of $28,000 to pay off long-term notes payable of $28,000.…

A: “Non-cash transaction” does not involve any cash dealings and this type transaction will not create…

Q: Determine the amount of long-term debt for ABC Co. using the following balance sheet information:…

A: >Accounting Equation forms the basis of double entry system of accounting. >It states that…

Q: Lloyd Inc. has sales of $500,000, a net income of $45,000, and the following balance sheet: Cash…

A: Net income = $45000 Current assets = $925200 Current liabilities = $232800 Inventories = $612000

Q: A company borrows $10,000 and signs a 2-year nontrade note payable. In preparing a statement of cash…

A: Given that, the company borrows $10,000 (Cash inflow) and signs a 2-year nontrade note payable

Q: Stansfield Corporation had the following activities in 2020. Payment of accounts payable $770,000.…

A: Financing activities:

Q: A corporation issued $2,000,000 of 20-year bonds for cash at 98. How would the transaction be…

A: Statement of cash flows: It is one of the financial statements that shows the cash and cash…

Q: n its fiscal 2010 balance sheet, Big Lots, Inc., reported cash and cash equivalents at the start of…

A: Calculation of increase/(decrease) in cash and cash equivalents : Particulars Amount Cash and…

Q: Bonds with a face value of $450,000 are issued at 105. The statement of cash flows wouldreport a…

A: The question is multiple choice question. Required Choose the Correct Option.

Concept explainers

Tax Deferred Retirement Benefits

It stands for Simplified Employee Pension Individual Retirement Account. This savings plan is for self-employed persons such as independent contractors, freelancers, entrepreneurs, etc. The tax rules of SEP IRA are the same as traditional IRA. Entrepreneurs can also open SEP IRA accounts for their employees and gain a tax advantage. The employees cannot make contributions to these accounts by themselves however they will be taxed upon withdrawal.

Question

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is:
Assume the following excerpts from a company's balance sheet: Property, plant, and equipment Long-term investments Beginning Balance Ending Balance $ 3,500,000 $ 1,100,000 $ 3,750,000 $ 950,000 During the year, the company did not purchase any property, plant, and equipment. It sold equipment that had accumulated depreciation of $150,000 for a loss of $20,000. The company did not sell any long-term investments during the period. Based solely on the information provided, the company's net cash provided by (used in) investing activities would be:
Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2021 and 2020, and the increases or decreases in each account from 2020 to 2021. Also presented is selected income statement information for the year ended December 31, 2021, and additional information. Selected Balance Sheet Accounta Increase 2021 2020 (Decrease) Assets Accounts receivable Property, plant, and equipment Accumulated depreciation Liabilities and Stockholders' Equity Bonds payable Dividenda payable Common stock, $1 par Additional paid-in eapital Retained earnings $ 60,000 303,000 (204,000) $ 37,000 260,000 (180,000) $23,000 43,000 24,000 88,000 14,500 48,000 15,500 130,000 72,000 10, 200 32,000 8,200 104,000 16,000 4,300 16.000 7,300 26,000 Selected Income Statement Information for the Year Ended Decenber 31, 2021 Sales revenue Depreciation Gain on sale oft equipnent Net income $ 181,000 59,000 19,500 54,000 Additional information: a. Accounts receivable relate to sales of merchandise. b.…
Moore Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows: Paid cash of $12,700 to retire bonds payable with a face value of $15,000 and a book value of $13,300. Paid cash of $48,000 to retire bonds payable with a face value of $45,000 and a book value of $47,000. Required: Record, in journal entry form, the entries that Moore would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.
GRAY Company uses the direct method to prepare its statement of cash flows. GRAY had the following cash flows during 2021: Cash receipts from sale of an old van - P 160,000; Cash receipts from issuance of ordinary shares - P 2,000,000; Cash receipts from the issuance of 10%, 10-yr bonds - P 1,500,000; Cash receipts from customers - P 1,000,000; Cash receipts from repayment of loan made to another company - P 1,200,000; cash receipts from dividends - P 150,000; Cash receipts from interest - P 150,000; Cash payments for operating expenses - P 650,000; Cash payments for taxes - P300,000; Cash payments for equity securities bought classified as FVOCI - P 900,000; Cash payment for equipment purchased -P 300,000; Cash payments for land required - P 1,200,000. What is the net cash provided (used) from investing activities?
A corporation issued $2000000 of 20-year bonds for cash at 98. How would the transaction be reported on the statement of cash flows?
MC Qu. 12-110 Augusta Company reported that its bonds. Augusta Company reported that Its bonds with a face value of $62,000 and a carrylng value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activitles is: Multiple Cholce ($68,000) ($6.000) ($62,000) $0; this is an operating activity.
17. Maymay Company trial balance has the following selected accounts: Cash (includes P100,000 in bond sinking fund for long term bond payable) 500,000 Accounts receivable 200,000 Allowance of uncollectible accounts 50,000 Deposits received from customers 30,000 Merchandise inventory 70,000 Unearned rent 10,000 Investment at fair value to profit or loss 20,000 What amount should Mumay Company report as total current assets in its statement of financial position? Group of answer choices 740,000 640,000 720,000 670,000
A company purchases equipment for $32,000 cash. This transaction should be shown on the statement of cash flows under a.financing activities. b.operating activities. c.noncash investing and financing activities. d.investing activities. On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 × 8% × 1/2), receiving cash of $884,177. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210…
BTS Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BTS should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii. Depreciation on plant that manufactures goods for sale, 6,000.iv. Payment of income tax on gain on sale of treasury bills, 2,000.v. Issued 500 ordinary shares for 50,000.vi. Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000
1. Cash paid to purchase long-term investments would be reported in the statement of cash flows in a.the cash flows from financing activities section. b.the cash flows from investing activities section. c.a separate schedule. d.the cash flows from operating activities section. 2. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount/premium using the straight-line method. Round answers to the nearest dollar. If an amount box does not require an entry, leave it blank or enter "0".
Maymay Company trial balance has the following selected accounts: Cash (includes P100,000 in bond sinking 500,000 fund for long term bond payable) Accounts receivable 200,000 Allowance of uncollectible accounts 50,000 Deposits received from customers 30,000 Merchandise inventory 70,000 Unearned rent 10,000 Investment at fair value to profit or loss 20,000 What amount should Mumay Company report as total current assets in its statement of financial position? O 740,000 640,000 720,000 O 670,000