Effect of Transactions on Cash FlowsState the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cashflowsa. Retired $180,000 of bonds, on which there was $1,800 of unamortized discount, for $187,000.b. Sold 7,000 shares of $25 par common stock for $57 per share.c. Sold equipment with a book value of $52,900 for $76,200d. Purchased land for $420,000 cash.e. Purchased a building by paying $90,000 cash and issuing a $90,000 mortgage note payable.f. Sold a new issue of $210,000 of bonds at 99g. Purchased 6,00o0 shares of $35 par common stock as treasury stock at $64 per share.h. Paid dividends of $1.50 per share. There were 33,000 shares issued and 5,000 shares of treasury stock.EffectAmountа.b.с.d.е.f.g.h.

Question
Asked Sep 29, 2019
75 views
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
a. Retired $180,000 of bonds, on which there was $1,800 of unamortized discount, for $187,000.
b. Sold 7,000 shares of $25 par common stock for $57 per share.
c. Sold equipment with a book value of $52,900 for $76,200
d. Purchased land for $420,000 cash.
e. Purchased a building by paying $90,000 cash and issuing a $90,000 mortgage note payable.
f. Sold a new issue of $210,000 of bonds at 99
g. Purchased 6,00o0 shares of $35 par common stock as treasury stock at $64 per share.
h. Paid dividends of $1.50 per share. There were 33,000 shares issued and 5,000 shares of treasury stock.
Effect
Amount
а.
b.
с.
d.
е.
f.
g.
h.
help_outline

Image Transcriptionclose

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 a. Retired $180,000 of bonds, on which there was $1,800 of unamortized discount, for $187,000. b. Sold 7,000 shares of $25 par common stock for $57 per share. c. Sold equipment with a book value of $52,900 for $76,200 d. Purchased land for $420,000 cash. e. Purchased a building by paying $90,000 cash and issuing a $90,000 mortgage note payable. f. Sold a new issue of $210,000 of bonds at 99 g. Purchased 6,00o0 shares of $35 par common stock as treasury stock at $64 per share. h. Paid dividends of $1.50 per share. There were 33,000 shares issued and 5,000 shares of treasury stock. Effect Amount а. b. с. d. е. f. g. h.

fullscreen
check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1

Statement of cash flows:

This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period. Statement of cash flows includes the changes in cash balance due to operating, investing, and financing activities. Operating activities include cash inflows and outflows from business operations. Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments. Financing activities includes cash inflows and outflows from issuance of common stock and debt, payment of debt and dividends.

Step 2

State whether the given transaction is a cash receipt or c...

Amounts in (S)
Effect
Cash payment
Cash receipt
Cash receipt
Cash payment
Cash payment
Cash receipt
Cash payment
Cash payment
$187,000
а.
b.
$ 399,000
$76,200
C.
d.
$ 420,000
90,000
е.
$ 207,900
f.
$ 384,000
g.
h.
$42.000
help_outline

Image Transcriptionclose

Amounts in (S) Effect Cash payment Cash receipt Cash receipt Cash payment Cash payment Cash receipt Cash payment Cash payment $187,000 а. b. $ 399,000 $76,200 C. d. $ 420,000 90,000 е. $ 207,900 f. $ 384,000 g. h. $42.000

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: Your manager asks you to bring the following incomplete accounts of Endeavor Printing, Inc., up to d...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

question_answer

Q: E 19-7 Transaction analysis—governmental funds Use transaction analysis to determine the effects of ...

A: A general fund is the primary fund used by Government. All the common resources and their utilizatio...

question_answer

Q: On June 1, 2019, Herbal Co. received $30,490 for the rent of land for 12 months. Journalize the ad...

A: When cash is received, cash is debited as cash is a real account and since it comes into the busines...

question_answer

Q: What are the steps to complete the T-account for each transaction while making use of the each accou...

A: Prepare T-accounts for the transactions as shown below:

question_answer

Q: Which of the following would be classified as investing cash flows on a statement of cash flows? 1. ...

A: A Cash Flow statement is a financial statement that represents the changes in the cash balances of a...

question_answer

Q: I need help with this:   Elgin Flooring Company sells floor coverings through two departments, carpe...

A: Income statement: The financial statement which reports revenues and expenses from business operatio...

question_answer

Q: I could use some help with (d) (at the bottom) on this.   Porter Corporation has just hired Bill Har...

A: Working Note:

question_answer

Q: Why is it important to organizationally separate the accounting function from other functions of the...

A: Accounting functions: The functions that are related to maintenance of records of the financial tran...

question_answer

Q: I need help on this problem.   Pearce Enterprises reported the following information for the past ye...

A: Free Cash Flow = Cash from operations – Capital Expenditure                            = Net Income ...