90.2K
Verified Solution
Link Copied!
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 $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000.
Sold 20,000 shares of $5 par common stock for $22 per share.
Sold equipment with a book value of $55,800 for $60,000.
Purchased land for $650,000 cash.
Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable.
Sold a new issue of $500,000 of bonds at 98.
Purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share.
Paid dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 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
Solved by verified expert
