Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 15, Problem 7DQ
To determine
Explain the transaction that would be reported on the statement of
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If $1488000 of bonds are issued during the year but $3100000 of old bonds are retired during the year, the statement of cash flows will show a(n)
Augusta Company reported that its bonds with a face value of $62,000 and a carrying value of $56,000 are retired for $62,000 cash. The amount to be reported under cash flows from financing activities is:
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Property, plant, and equipment
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$ 3,500,000
$ 1,100,000
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Chapter 15 Solutions
Managerial Accounting
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Fully depreciated equipment costing 50,000 was...Ch. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 1BECh. 15 - Prob. 2BECh. 15 - Prob. 3BECh. 15 - Prob. 4BECh. 15 - Land transactions on the statement of cash flows...Ch. 15 - Prob. 6BECh. 15 - Prob. 7BECh. 15 - Prob. 8BECh. 15 - Prob. 9BECh. 15 - Prob. 1ECh. 15 - Effect of transactions on cash flows State the...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 18ECh. 15 - Prob. 19ECh. 15 - Prob. 20ECh. 15 - Prob. 21ECh. 15 - Prob. 22ECh. 15 - Prob. 1PACh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1PBCh. 15 - Prob. 2PBCh. 15 - Prob. 3PBCh. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1MADCh. 15 - Prob. 2MADCh. 15 - Prob. 3MADCh. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Financial condition Tidewater Inc., a retailer,...Ch. 15 - Prob. 4TIF
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- 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".arrow_forwardA corporation issued $2, 000, 000 of common stock in exchangẹ for $2, 000, 000 of fixed assets. Where would this transaciton be reported on the statement of cashflowsarrow_forwardThe following accounts and corresponding balances were drawn from Dexter Company's Year 2 and Year 1 year-end balance sheets. Account Title Bonds payable Year 1 $300,500 282,300 Year 2 $213,200 373,300 Common stock Other information drawn from the accounting records: 1. Dividends paid during the period amounted to $44,800. 2. There were no bond liabilities issued during the period. Required a. Compute the amount of cash flow associated with the repayment of bond liabilities. b. Compute the amount of cash flow associated with the issue of common stock. c. Prepare the financing activities section of the statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the amount of cash flow associated with the repayment of bond liabilities. Cash flow for the repayment of bond liabilitiesarrow_forward
- The following accounts and corresponding balances were drawn from Dexter Company’s Year 2 and Year 1 year-end balance sheets. Account Title Year 2 Year 1 Bonds payable $212,100 $300,800 Common stock 373,200 275,300 Other information drawn from the accounting records: Dividends paid during the period amounted to $42,100. There were no bond liabilities issued during the period. Requireda. Compute the amount of cash flow associated with the repayment of bond liabilities.b. Compute the amount of cash flow associated with the issue of common stock.c. Prepare the financing activities section of the statement of cash flows.arrow_forwardBTS 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, 12,000arrow_forwardMoore 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.arrow_forward
- An entity provided the following information on December 31, 2020: Accounts payable 2,000,000 Accrued expenses 800,000 Bonds payable due December 31, 2021 2,500,000 Premium on bonds payable 300,000 Deferred tax liability 500,000 Income tax payable 1,100,000 Cash dividend payable 600,000 Share dividend payable 400,000 Note payable – 6%, due March 1, 2021 1,500,000 Note payable – 8%, due October 1, 2021 1,000,000 The financial statements for 2020 were issued on March 31, 2021. On March 1, 2021, the 6% note payable was refinanced on a long-term basis. Under the loan agreement for the 8% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2020. What amount should be reported as total current liabilities?arrow_forwardBT21 Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BT21 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.arrow_forwardA 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…arrow_forward
- The Murdock Corporation reported the following balance sheet data for 2024 and 2023: Cash Available-for-sale debt securities (not cash equivalents) Accounts receivable Inventory Prepaid insurance Land, buildings, and equipment Accumulated depreciation Total assets Accounts payable Salaries payable Notes payable (current) Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity 2024 $ 80,705 17,000 83,000 168,000 1,770 1,256,000 (613,000) $ 993,475 $ 79,040 21, 200 27,700 203,000 300,000 362,535 $ 993,475 Additional Information for 2024: (1) Sold available-for-sale debt securities costing $71,000 for $75,800. (2) Equipment costing $20,000 with a book value of $5,300 was sold for $6,450. (3) Issued 6% bonds payable at face value, $203,000. (4) Purchased new equipment for $148,000 cash. (5) Pald cash dividends of $21,500. (6) Net Income was $53,000. 2023 $ 24,755 88,000 70,950 147,700 2,300 1,128,000 (575,000) $ 886,705 $ 151,670 26,000 78,000 8 300,000…arrow_forwardDuring the year, an entity had the following activities: Payment for the early payment of long-term bonds payable of P5,000,000 4,000,000 Payment of cash dividend declared in prior year 2,000,000 Preference share capital converted into ordinary share capital 1,000,000 Proceeds from sale of treasury shares (cost of treasury shares P1,000,000) 1,500,000 What amount should be reported as net cash used in financing activities? a. 4,500,000 b. 3,500,000 c. 2,500,000 d. 5,500,000arrow_forwardDuring the year, Company A had the transactions listed below. Cash to retire bonds $4,200 Proceeds from bond issuance 8,040 Proceeds from sale of common stock 6,240 Cash to purchase common stock of Company A 2,400 Cash to purchase common stock of Company B 1,080 What amount would the company include in the financing section of the statement of cash flow? Select one: a. $1,024 million b. $950 million c. $3,498 million d. $510 million e. None of these are correctarrow_forward
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