V5. how is this reposrted in the statement of cash flow using the direct method? conversion if bonds payable into common stock: Conversion of bonds payable into common stock.✓ (no answer)Added in determining cash receipts from customersDeducted in determining cash receipts from customersAdded in determining cash payments to suppliersDeducted in determining cash payments to suppliersCash outflow-investing activityCash inflow-investing activityCash inflow-financing activitySignificant noncash investing and financing activityIs not shownCash outflow-financing activity

Answered: how is this reposrted in the statement…

how is this reposrted in the statement of cash flow using the direct method? conversion if bonds payable into common stock:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 16CE

See similar textbooks

Related questions

Q: Brett and Andy applied for the same credit card from the same bank. The bank checked both of their…

A: Monthly percentage rate = APR / 12 (a) Bret monthly percentage rate = 12.6% / 12 Bret monthly…

Q: Prepare journal entries for each of the following transactions. (Credit account titles are…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Determine the NLF, NSF and the liquidity ratio for the FY 2021; Determine the days receivable, Days…

A: A]. NLF = Net Long Term Financing = Long Term Financing — Net Fixed Assets =…

Q: Rexford Company purchased a machine on January 1, 2017, for $57,600 cash. The machine has an…

A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…

Q: A method of depreciation whereby the amount to recover is spread uniformly over the estimated life…

A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…

Q: Bonneau Corporation declares a cash dividend of $100,000 on July 1 for any shareholder on record on…

A: Dividend is the amount of profit which is distributed or given by the company to its shareholders as…

Q: Problem 3 On January 1, 20x9, Maykaya Corporation acquired 80 percent of Galisod Company's common…

A: Consolidated financial statements: If an entity (investor company) acquires more than 50% stake in…

Q: On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000.…

A: The bonds payable are issued at discount when market rate is higher than the coupon rate of bonds…

Q: Part (B) Some threats could be happened in the production cycle, one of them is over or under…

A: Answer:- Production cycle meaning:- All actions linked to the conversion of raw materials into…

Q: On December 1, 2020, Hidilyn Inc. delivered 10 boxes of Otap bread and 10 packs of sample bread, for…

A: Here discuss about the details of the consignment sales and its remittance to the consignor related…

Q: 3 Your boss informs you that s/he will be sending you overseas to negotiate a deal with a new…

A: Answer:- Negotiation meaning:- A negotiation is a strategic debate that aims to settle a problem in…

Q: rual profit

A: Difference between Cash and Accrual Profit The cash basis and accrual basis of accounting are two…

Q: Bunker makes two types of briefcase, fabric and leather. The company is currently using a…

A: Introduction: The distribution on secondary expenditures to generated items is known as overheads.…

Q: Bergs Company owns a building purchased on January 1, 2018, for 50 million. The building was used…

A: As per IAS 40 Investment property, An investment property is to be measured at fair value Book…

Q: In June 2022, Gold Tempo Retailers sold refundable merchandise coupons. Gold Tempo received P10 for…

A: The revenue a business receives before providing a commodity or service is known as unearned…

Q: 12. If an overhead cost of operating a machine is $500,000 for 1000 hours, then the cost allocation…

A: Cost allocation rate is the rate at which cost is allocated to the product. Cost allocation rate is…

Q: Calculate COGS from the following? Opening stock - OMR 12,000 Closing stock - OMR 8,000 Purchases -…

A: Formula: Cost of goods sold = Opening stock + Purchases - closing stock Deduction of closing stock…

Q: Zest Company noted the following information regarding its returnable containers for fiscal year…

Q: 2. The estimated unit costs for CNR Inc., when it is operating at a production and sales level of…

A: The cost of manufacturing a product includes raw material costs, labor costs, manufacturing…

Q: ROBLEM SOLVING: INSTRUCTIONS: Answer the question/s on each supporting computations on the space…

A: As per IFRS 3 At the time of business combination or acquisation 1) All assests and liablities…

Q: The direct method as used by Ultimate Manufacturers is one method that can be used to re-assign…

A: Service department costs are the indirect costs to units produced and therefore these are known as…

Q: CLOUD 9 LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31 2019 2018 2020 373,578…

A: Horizontal Analysis is a way of analyzing financial statements. It is used to compare financial…

Q: On March 31, she received $2,500 cash for legal services to be provided in April.

A: the business or an individual revenue by providing the services or by providing the goods to client…

Q: As of July 31, the books of BSA Partnership showed capital balances of $40,000 for Ben, P25,000 for…

A: In liquidation of the partnership, if during appropriation of profit or loss to partner’s capital…

Q: Mr Ahmed and Mr Mohammed are partners sharing profits and losses in the ratio of 7:3. Mr Sulaiman is…

A: Goodwill means the reputation of the company due to any factor like location , product , price ,…

Q: In WEAK’s books, what amounts are recognized for the following?

A: The answer is stated below:

Q: Raymond Ryans purchased a 50-year-old flat in Melbourne on 15 September 2010 for $350,000 which he…

A: Capital Gain: - Capital gain is the gain that is realized at the time of selling the assets or any…

Q: A store purchases ear buds from the manufacturer for $5 each. Calculate the sticker price for the…

A: Gross Margin - Gross Margin is the profit earned by the organization from the sales made by the…

Q: In July 2020, ABC Co. computed its equivalent unit costs under FIFO process costing as follows:…

Q: On January 1, 2019, S Corp purchased a computer with an expected economic life of 20 years. On…

A: Consolidated financial statements are a set of financial statements prepared for a group company…

Q: Briefly explain why a diversified company (such as a conglomerate) should use a project-specific…

A: There are many conglomerates that operate in feild of different segments and different sectors which…

Q: A construction company purchases $50,000 worth of equipment on July 1, 2014. The company estimates…

A: Introduction: Depreciation: Depreciation is an expense to be shown in income statement. Decreasing…

Q: Raymond Ryans purchased a 50-year-old flat in Melbourne on 15 September 2010 for $350,000 which he…

A: Introduction: When you sell a capital product and its value rises, you get a capital gain. Almost…

Q: A contractor has 50 men of the same capacity. They can complete the work in 30 days, the working day…

A: Total cost is the amount incurred by the company on the production process and business functions of…

Q: Annual depreciation on equipment at Charmed, Inc.is $2,100. The adjusting entry to record one…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: What is the effect of writing off of an uncollectible account to the working capital of a company?…

A: >Working Capital is the excess of Current Assets over Current Liabilities. >Account…

Q: 16. () Hoffman Company's net income for the current year was $480,000. Depreciation was $62,000.…

A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…

Q: Brier Company, manufacturer of car seat covers, provided the following standard costs for its…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: B. In deciding a transfer pricing method, advise management on: i. negotiated transfer pricing ii.…

A: Transfer price can be defined as the price charged for products exchanged in internal transactions…

Q: 1. An entity acquired all the share capital of a foreign entity at a consideration of 9 million…

A: Thanks for the Question: Bartleby's Guideline: “Since you have asked multiple question, we will…

Q: The Hiei Company has a cycle time of 1.5days, uses a Raw and In Process (RIP) account and charges…

A: The total of all costs utilized to manufacture a product or service that has been sold is known as…

Q: Pristine Painting Services uses a job order cost system to collect the costs of its home painting…

Q: Arnel is a managing partner in a trading business. Part of his profit allocation is a bonus based on…

A: In Excess of P200,000 After Deducting Bonus means we have to calculate bonus on Percentage of Net…

Q: A. Define transfer pricing and elaborate on FOUR (4) of its purposes.

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: Given that it takes an employee about 16 seconds to lift, close, fill, and shelve a jar of peanut…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: Partnership net loss of P132,000 is to be divided between partners Doods and Elsie according to the…

A: Solution: In partnership, income is divided between partner in profit sharing ratio defined, if…

Q: ABC Co. distributes annual bonus to its sales manager. The company reported 2 million profit for…

A: The net profit after tax is calculated as difference between net income and income tax.

Q: Jill invested $25,000 in her business, Fashion Unlimited. The journal entry would include a

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Golden Co. is studying a project that would have a 10-year life and would require a $370,000…

A: The payback period will be used to evaluate projects and determine the number of years it will take…

Q: Berlin Company paid or collected during 2020 the following items: Insurance premiums paid P462,000;…

A: Salary expense is calculated by adding the ending Salaries payable to the salaries paid during the…

Question

V5. how is this reposrted in the statement of cash flow using the direct method? conversion if bonds payable into common stock:

Conversion of bonds payable into common stock.
✓ (no answer)
Added in determining cash receipts from customers
Deducted in determining cash receipts from customers
Added in determining cash payments to suppliers
Deducted in determining cash payments to suppliers
Cash outflow-investing activity
Cash inflow-investing activity
Cash inflow-financing activity
Significant noncash investing and financing activity
Is not shown
Cash outflow-financing activity

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following need not be disclosed in a schedule accompanying the statement of cash flows as an investing and financing activity not affecting cash? a. acquisition of fixed assets in exchange for capital stock b. dividend distributed in capital stock of the company (stock dividend) c. retirement of a bond issue through the issuance of another bond issue d. conversion of convertible debt to capital stock
Classification of Cash Flows A company's statement of cash flows and the accompanying schedule of investing and financing activities not affecting cash may contain the following major sections: a. Operating Activities b. Investing Activities c. Financing Activities d. Investing and Financing Activities not Affecting Cash The following is a list of items that might appear on a company's statement of cash flows or in the accompanying schedule. Required: Using the letters A through D, indicate in which section of the statement of cash flows (or the accompanying schedule) the preceding item would most likely be classified. After each letter, indicate with a plus (+) or a minus () whether the item would be reported on the statement (or the accompanying schedule).
Classification of Cash Flows The following are several items that might be disclosed on a companys statement of cash flows presented using the indirect method. a. Net income b. Depreciation expense c. Issuance of common stock d. Loss on disposal of equipment e. Purchase of a building f. Decrease in accounts payable g. Converted bonds into common stock h. Sale of long-term investment i. Payment of interest j. Increase in inventory Required: 1. Indicate whether each item should be classified as a cash flow from operating activities, cash flow from investing activities, cash flow from financing activities, or noncash investing and financing activity. 2. CONCEPTUAL CONNECTION Why is the proper classification of cash flows important?
Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings
Which of the following represents a source of cash in the investing section? A. sale of investments B. depreciation expense C. decrease in accounts receivable D. decrease in bonds payable
Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these
Which of these transactions would be part of the financing section? A. inventory purchased for cash B. sales of product, for cash C. cash paid for purchase of equipment D. dividend payments to shareholders, paid in cash