FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Identify any non-cash transactions that occurred during the year, and show how they would be reported in the non-cash investing and financing activities section of the statement of cash flows .
a. Issued 750shares of $3 par common stock for cash of $17,000.
b. Issued 5,100 shares of $3 par common stock for a building with a fair market value of $96,000.
c. Purchased new truck with a fair market value of $29,000. Financed it 100% with a long-term note.
d. Retired short-term notes of $28,000 by issuing 1,900 shares of $3 par common stock.
e. Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term note of $23,000 to Bank of Trust.
Dirtbikes, Inc.
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Statement of Cash Flows (Partial)
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Year Ended December 31, 2024
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Non-cash Investing and Financing Activities:
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Total Non-cash Investing and Financing Activities
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Expert Solution
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Step 1
Non-cash Investing and Financing Activities:
1. Purchase of building by issuing 5,100 shares of common stock $96,000
2. Purchase new truck with a long-term note $29,000
3. Retired short-term notes by issuing 1,900 shares common stock $28,000 .
4. Repaid long-term note of $10,500 to Bank of Tallahassee
by issuing a new long-term note to Bank of Trust $23,000
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