Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:
Effect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 3.6C
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Question
Effect of Transactions on
State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:
- Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.
- Sold 7,000 shares of $15 par common stock for $37 per share.
- Sold equipment with a book value of $58,600 for $84,400.
- Purchased land for $490,000 cash.
- Purchased a building by paying $88,000 cash and issuing a $120,000 mortgage note payable.
- Sold a new issue of $140,000 of bonds at 97.
- Purchased 3,500 shares of $30 par common stock as
treasury stock at $57 per share. - Paid dividends of $1.50 per share. There were 20,000 shares issued and 3,000 shares of treasury stock.
Transcribed Image Text:Effect
Amount
Cash payment
$ 333,000
а.
b.
Cash receipt v
Cash receipt v
84,400
с.
d.
Cash payment
$ 490,000
е.
Cash payment v
88,000
f.
Cash receipt v
g.
Cash payment v
h.
Cash payment v
00
%24
%24
%24
%24
%24
%24
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