College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 23, Problem 7CE
To determine
Describe how the given event is reported on a statement of
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24.
A company acquired a building, paying a portion of the purchase price in cash and issuing a mortgage note payable to the seller for the balance.In a statement of cash flows, what amount is included in investing activities for the above transaction?
Zero
Acquisition price
Mortgage amount
Cash payment
Assume the company purchases land for $1,000,000, paying $ 400,000 cash and borrowing the remainder with long-term notes payable. How should this transaction be reported on a statement of cash flows?
Duncan Corp. purchased a building, paying part of the purchase price in cash and issuing a mortgage note payable to the seller for the balance. In a statement of cash flows, what amount is included in investing activities for the above transaction?
a. the full purchase price
b. the cash payment
c. the amount mortgaged
d. zero (but disclosed in the notes)
Chapter 23 Solutions
College Accounting, Chapters 1-27
Ch. 23 - True/False The purpose of the statement of cash...Ch. 23 - Investing activities are those transactions...Ch. 23 - An increase in accounts receivable is deducted...Ch. 23 - Prob. 4TFCh. 23 - Prob. 5TFCh. 23 - Prob. 1MCCh. 23 - Prob. 2MCCh. 23 - Prob. 3MCCh. 23 - Prob. 4MCCh. 23 - Prob. 5MC
Ch. 23 - Prob. 1CECh. 23 - Prob. 2CECh. 23 - Prob. 3CECh. 23 - Prob. 4CECh. 23 - Prob. 5CECh. 23 - Prob. 6CECh. 23 - Prob. 7CECh. 23 - Prob. 8CECh. 23 - Prob. 1RQCh. 23 - Prob. 2RQCh. 23 - Prob. 3RQCh. 23 - Prob. 4RQCh. 23 - Prob. 5RQCh. 23 - Prob. 6RQCh. 23 - Prob. 7RQCh. 23 - Prob. 8RQCh. 23 - Prob. 9RQCh. 23 - Prob. 10RQCh. 23 - Prob. 11RQCh. 23 - Prob. 12RQCh. 23 - Prob. 13RQCh. 23 - Prob. 14RQCh. 23 - Prob. 15RQCh. 23 - Prob. 16RQCh. 23 - Prob. 17RQCh. 23 - Prob. 18RQCh. 23 - Prob. 19RQCh. 23 - Prob. 20RQCh. 23 - Prob. 21RQCh. 23 - SERIES A EXERCISES IDENTIFICATION OF OPERATING,...Ch. 23 - CHANGE IN CASH AND CASH EQUIVALENTS Olsen Companys...Ch. 23 - Prob. 3SEACh. 23 - Prob. 4SEACh. 23 - GAINS AND LOSSES ON THE SALE OF LONG-TERM ASSETS...Ch. 23 - Prob. 6SEACh. 23 - Prob. 7SEACh. 23 - CASH PAID FOR INTEREST Ball Companys income...Ch. 23 - Prob. 9SPACh. 23 - Prob. 10SPACh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn...Ch. 23 - EXPANDED STATE MENT OF CASH FLOWS Financial...Ch. 23 - Prob. 1SEBCh. 23 - Prob. 2SEBCh. 23 - Prob. 3SEBCh. 23 - Prob. 4SEBCh. 23 - Prob. 5SEBCh. 23 - Prob. 6SEBCh. 23 - Prob. 7SEBCh. 23 - Prob. 8SEBCh. 23 - Prob. 9SPBCh. 23 - Prob. 10SPBCh. 23 - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES...Ch. 23 - EXPANDED STATEMENT OF CASH FLOWS Financial...Ch. 23 - MANAGING YOUR WRITING Direct Method A friend of...Ch. 23 - MASTERY PROBLEM Financial statements for...Ch. 23 - CHALLENGE PROBLEM The long-term liabilities...
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- Assume that a company purchases land for $1,000,000, paying $400,000 cash and borrowing the remainder with a long-term note payable. How should this transaction be reported on a statement of cash flows?arrow_forwardTinkiwinki Inc., corporation, has the following pertinent information happened during year 2022 Cash receipts from customers Cash receipts from rent income Cash paid to suppliers Payment of short-term loan Cash paid to other operating expenses Cash payment for long-term investments Cash receipts from disposal of old machine Proceeds from long-term borrowings Recognition of depreciation Recognition of bad debts Cash payment for trading securities Purchased equipment on account P 6,830,000 220,000 1,750,000 400,000 560,000 380,000 600,000 2,000,000 90,000 48,000 100,000 260,000 1,000,000 Purchased of land Proceeds from issuance of share capital Dividends paid 1,500,000 80,000 Dividends received 40,000 Interest paid Interest received 100,000 50,000 330,000 Income tax paid Required: Prepare Statement of Cash Flows using direct methodarrow_forwardUse the following information to calculate the net cash provided (inflow) or used by (outflow) from financing activities for the Lulu Corporation: (a) Net income, $10,000 (b) Sold common stock for $40,000 cash (c) Paid cash dividend of $13,000 (d) Repayment of bond payable, $26,000 (e) Purchased equ for $12,000 cash (f) Issued long term mortgage notes payable for $250,000 cash. (Note: in the answer space, write only the number, with no $ signs or commas. That is, if your answer is $1,000, white it as : 1000 ). Answer:arrow_forward
- FDN Trading provided the following information during the current year. Proceeds from bank loans, 950,000 Proceeds from sale of second-hand equipment, #88,500 Interest paid on bank loan, $50,000 Payment of bank loan principal, $498,000 Withdrawals of owner, P132,000 Additional investments of owner, #519,000 How much should be reported on the Statement of Cash Flows as net cash provided by (used in) financing activities? Note: Encode as a negative amount if the final answer is used in.arrow_forwardIf Sheffield Corp. realizes a loss of $9500 on a cash sale of office equipment having a book value of $95400, the total amount reported in the cash flows from investing activities section of the statement of cash flows is $95400. $104900. $85900. $9500.arrow_forwardBramble Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Cash Accounts receivable Inventory Equity investments Buildings Equipment Copyrights Totals Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-buildings Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 1. 2. Additional data related to 2025 are as follows. 3. 4. 5. 6. 7. December 31 2025 $38,800 12,200 11,900 -0- -0- 39,900 5,000 $107,800 $3,000 1,900 -0- 5,000 -0- 2,900 36,000 38,000 21,000 $107,800 2024 $12,800 9,900 10,000 3,000 30,000 19,900 5,300 $90,900 $4,400 4,500 5,900 3,900 5,000 4,100 25,000 33,000 5,100 $90,900 Equipment that had cost $11,100 and was 30% depreciated at time of disposal was sold for $2,500. $5,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5,000. On January 1,…arrow_forward
- Use the following excerpts from Eagle Company's financial records to determine net cash flows from financing activities. acquired new plant assets $18,000 borrowed from bank, note payable 40,000 declared and paid dividends to shareholders 15,000arrow_forward?Which section of the statement of cash flows is used to report the purchase of a building by issuing a 9-month note payable .Financing activities .A O Investing activities .BO Schedule of noncash investing or financing activity.CO .Operating activities.D Oarrow_forwardCompany ABC is preparing its 2021 financial statements. At the end of 2021, the company purchased a building for $500,000 making a down payment of $200,000 cash and signing a $300,000 mortgage note. The president of Company ABC, Jackie Brown understand that debt transactions are considered a financing activity from a business perspective and also, that purchases of long-term assets are investing activities. Consequently, Jackie is pondering how to report this transaction on the statement of cash flows and has asked you as her accountant to look into the issue. Using the related GAAP, prepare a memo to the president that summarizes how to report this transaction on the State of Cash Flowsarrow_forward
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