Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter C, Problem 25E
To determine
Identify the non-cash transactions that occurred during the year and the explain the manner in which they are reported in the non-cash investing and financing activities section of the statement of cash flows.
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Problem:
The following transactions occurred at BBS Company in 2022.
1. The company purchased a new building for $258,000. A down payment of $43,000 was made. The balance is due in four equal
annual installments (plus interest) beginning July 1, 2023.
2. The company bought 1,000 shares of its own common stock for $13,000.
3. The company purchased as an investment $42,000 par value of Ridge Company's 8 percent bonds, maturing in five years. The
purchase price was $42,000.
Required:
Compute the company's net cash flow from investing activities. (Amounts to be deducted should be indicated with a minus sign.)
Journal Entries:
Purchase of investment in bonds
Purchase of new building
Purchase of treasury stock
Format:
Cash flows from investing activities
%24
On January 1, 2018, the Apex Company exchanged some shares of common stock it had been holding as aninvestment for a note receivable. The note principal plus interest is due on January 1, 2019. The 2018 incomestatement reported $2,200 in interest revenue from this note and a $6,000 gain on sale of investment in stock. Thestock’s book value was $16,000. The company’s fiscal year ends on December 31.Required:1. What is the note’s effective interest rate?2. Reconstruct the journal entries to record the sale of the stock on January 1, 2018, and the adjusting entry torecord interest revenue at the end of 2018. The company records adjusting entries only at year-end
Cypress Corp. went into business on October 1, 2020. Cypress had the following transactions during
2020:
Oct. 1 - Issued a total of 20 shares of stock to two stockholders for a total of $6,00O.
• Oct. 1 - Borrowed $20,000 from the bank. No payments will be made on this loan until October
1, 2022, when $24,000 will be due.
Oct. 12 - Purchased land for $8,000 in cash.
• Nov. 1 - Purchased equipment for $12,000 in cash. The equipment is expected to last for four
years with no salvage value.
• Nov. 15 - Purchased $5,000 inventory, half in cash and half on account.
• Dec. 1 - Purchased six months of insurance for $1,200.
Dec. 10 - Sold $2,000 of inventory for $4,500 in cash.
• Dec. 12 - Sold one-half of land for $5,000 in cash.
Dec. 13 - Paid balance owed on accounts payable.
Dec. 18 - Sold $1,500 of inventory for $2,500 on account.
• Dec. 31 - Paid $1,000 in dividends.
What were the net operating cash flows for Cypress during 2020?
O $3,300
$800
O ($600)
O ($1,700)
None of the above
Chapter C Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Prob. 6TICh. C - Prob. 7TICh. C - Prob. 8TICh. C - Muench Inc.s accountant has partially completed...Ch. C - Prob. 1QC
Ch. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Prob. 6QCCh. C - Prob. 7QCCh. C - Prob. 8QCCh. C - Prob. 9QCCh. C - Prob. 10QCCh. C - Prob. 1RQCh. C - Prob. 2RQCh. C - Prob. 3RQCh. C - Prob. 4RQCh. C - Prob. 5RQCh. C - Prob. 6RQCh. C - Prob. 7RQCh. C - If a company experienced a loss on disposal of...Ch. C - Prob. 9RQCh. C - Prob. 10RQCh. C - Prob. 11RQCh. C - Prob. 12RQCh. C - Prob. 13RQCh. C - Prob. 14RQCh. C - How does the direct method differ from the...Ch. C - Prob. 16RQCh. C - Prob. 1SECh. C - Prob. 2SECh. C - Prob. 3SECh. C - DVR Equipment, Inc. reported the following data...Ch. C - Prob. 5SECh. C - Prob. 6SECh. C - Prob. 7SECh. C - Prob. 8SECh. C - Prob. 9SECh. C - Julie Lopez Company expects the following for...Ch. C - Prob. 11SECh. C - Prob. 12SECh. C - Prob. 13SECh. C - Prob. 14SECh. C - Prob. 15SECh. C - Prob. 16ECh. C - Prob. 17ECh. C - Prob. 18ECh. C - Prob. 19ECh. C - Prob. 20ECh. C - The income statement of Boost Plus, Inc. follows:...Ch. C - Prob. 22ECh. C - Rouse Exercise Equipment, Inc. reported the...Ch. C - Use the Rouse Exercise Equipment data in Exercise...Ch. C - Prob. 25ECh. C - Prob. 26ECh. C - Prob. 27ECh. C - Prob. 28ECh. C - Prob. 29ECh. C - Prob. 30ECh. C - Prob. 31ECh. C - American Rare Coins (ARC) was formed on January 1,...Ch. C - Prob. 33APCh. C - Prob. 34APCh. C - Prob. 35APCh. C - Boundary Rare Coins (BRC) was formed on January 1,...Ch. C - Use the Rolling Hills, Inc. data from Problem...Ch. C - Prob. 38APCh. C - Classic Rare Coins (CRC) was formed on January 1,...Ch. C - Accountants for Benson, Inc. have assembled the...Ch. C - Prob. 41BPCh. C - Prob. 42BPCh. C - Prob. 43BPCh. C - Use the Sweet Valley data from Problem P14-41B....Ch. C - Prob. 45BPCh. C - Prob. 47PCh. C - Before you begin this assignment, review the Tying...Ch. C - Prob. 1DCCh. C - Prob. 1EICh. C - Details about a companys cash flows appear in a...
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