FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on
a. Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.
b. Sold 7,000 shares of $30 par common stock for $53 per share.
c. Sold equipment with a book value of $59,700 for $86,000.
d. Purchased land for $339,000 cash.
e. Purchased a building by paying $64,000 cash and issuing a $90,000 mortgage note payable.
f. Sold a new issue of $300,000 of bonds at 97.
g. Purchased 3,600 shares of $20 par common stock as
h. Paid dividends of $1.90 per share. There were 24,000 shares issued and 4,000 shares of treasury stock.
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- I'm not sure what I'msupposed to do for this problem or how to go about solving it.arrow_forwardFor Exercise 16-2, note (1) the section of the statement the transaction would impact (0,l or F), (2) whether it is an inflow or outflow and (3) the cash amount that would be reported EXERCISE 16-2 Effect of transactions on cash flows State the effect (cash receipt or payment and amount) of each of the following tra actions, considered individually, on cash flows: trans a. Sold 5,000 shares of $30 par common stock for $45 per share. b. Sold equipment with a book value of $42,500 for $41,000. c. Purchased land for $120,000 cash. d. Purchased 5,000 shares of $30 par common stock as treasury stock at $50 per share e. Sold a new issue of $100,000 of bonds at 101. f. Paid dividends of $1.50 per share. There were 30,000 shares issued and 5,00 shares of treasury stock. g. Retired $500,000 of bonds, on which there was $2,500 of unamortized discount for $501,000. h. Purchased a building by paying $30,000 cash and issuing a $90,000 mortgage noe payable. Objective 1 /b. Cash receipt, $41,000arrow_forwardUse the information below (in millions) to determine net cash inflows (outflows) from investing activities. Cash received from: Customers $ 2,550 Interest on investments 250 Sale of land 150 Sale of Rowdy's common stock 700 Issuance of debt securities 2,500 Cash paid for: Interest on debt $ 350 Income tax 130 Debt principal reduction 2,000 Purchase of equipment 5,000 Purchase of inventory 1,500 Dividends on common stock 350 Operating expenses 600arrow_forward
- Indicate the effect, if any, that each separate transaction has on financing cash flows. Note: Select "No Effect" if there is no effect. a. Long-term notes payable with a carrying value of $19,000 are retired for $22,000 cash, resulting in a $3,000 loss. b. Paid cash dividends of $15,000 to common stockholders. c. Acquired $24,000 worth of machinery in exchange for common stock. Items a. Long-term notes payable b. Dividends c. Machinery Amount Effect on financing cash flowsarrow_forwardDuring the current year, Royal Industries sold treasury stock for $32,000 cash. The treasury stock was purchased last year for $28,000. The company also issued bonds payable for $430,000 cash and declared and paid dividends of $40,000. What amount did Royal report on its statement of cash flows for cash provided by financing activities? O $390,000 O $394,000 O $422,000 O $434,000arrow_forwardIndicate the effect, if any, that each separate transaction has on financing cash flows. Note: Select "No Effect" if there is no effect. a. Long-term notes payable with a carrying value of $15,000 are retired for $16,000 cash, resulting in a $1,000 loss. b. Paid cash dividends of $11,000 to common stockholders. c. Acquired $20,000 worth of machinery in exchange for common stock. Items a. Long-term notes payable b. Dividends c. Machinery Amount Effect on financing cash flowsarrow_forward
- Renaldo Cross Company paid $2,000 interest on short-term notes payable, $10,000 principal of long-term bonds, and $6,000 in dividends on its common stock. Renaldo Cross Company would report cash outflows from activities, as follows: Multiple Choice Operating, $0; investing, $10,000; financing, $8,000. Operating, $0; investing, $0; financing, $18,000. Operating, $2,000; investing, $10,000; financing, $6,000. Operating, $2,000; investing, $0; financing, $16,000. 身arrow_forwardProvide Solutions with Correct Answerarrow_forwardThe following summary transactions occurred during the year for Bluebonnet. Cash received from: Collections from customers Interest on notes receivable Collection of notes receivable Sale of investments Issuance of notes payable Cash paid for: Purchase of inventory Interest on notes payable Purchase of equipment Salaries to employees Payment of notes payable Dividends to shareholders $380,000 6,000 Cash flows from investing activities: -50,000 30,000 100,000 Net cash flows from investing activities 160,000 5,000 85,000 90,000 Required: Calculate net cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.) 25,000 20,000 BLUEBONNET COMPUTER Statement of Cash Flows (partial) For the Year Ended December 31, 2024 $ 0arrow_forward
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