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Effect of Transactions on Cash Flows
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:
Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000.
Sold 7,000 shares of $15 par common stock for $24 per share.
Sold equipment with a book value of $49,200 for $70,800.
Purchased land for $373,000 cash.
Purchased a building by paying $64,000 cash and issuing a $90,000 mortgage note payable.
Sold a new issue of $280,000 of bonds at 97.
Purchased 6,500 shares of $15 par common stock as treasury stock at $30 per share.
Paid dividends of $1.90 per share. There were 19,000 shares issued and 3,000 shares of treasury stock.
| | Effect | Amount |
| a. | Cash payment | $ |
| b. | Cash receipt | $ |
| c. | Cash receipt | $ |
| d. | Cash payment | $ |
| e. | Cash payment | $ |
| f. | Cash receipt | $ |
| g. | Cash payment | $ |
| h. | Cash payment | $ |
Answer & Explanation
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