FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Effect of Transactions on Cash Flows
State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on
cash flows:
a. Retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000.
b. Sold 7,000 shares of $25 par common stock for $56 per share.
c. Sold equipment with a book value of $62,400 for $89,900.
d. Purchased land for $406,000 cash.
e. Purchased a building by paying $49,000 cash and issuing a $90,000 mortgage note payable.
f. Sold a new issue of $170,000 of bonds at 97.
g. Purchased 5,100 shares of $40 par common stock as treasury stock at $74 per share.
h. Paid dividends of $2.40 per share. There were 32,000 shares issued and 5,000 shares of treasury stock.
Effect
Amount
b.
C.
d.
f.
h.
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Transcribed Image Text:< Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. b. Sold 7,000 shares of $25 par common stock for $56 per share. c. Sold equipment with a book value of $62,400 for $89,900. d. Purchased land for $406,000 cash. e. Purchased a building by paying $49,000 cash and issuing a $90,000 mortgage note payable. f. Sold a new issue of $170,000 of bonds at 97. g. Purchased 5,100 shares of $40 par common stock as treasury stock at $74 per share. h. Paid dividends of $2.40 per share. There were 32,000 shares issued and 5,000 shares of treasury stock. Effect Amount b. C. d. f. h.
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