Identifying and reporting non-cash transactions Dirtbikes, Inc. identified the following selected transactions that occurred during the year ended December 31, 2018:  Issued 750 shares of $3 par common stock for cash of $17,000. Issued 5,100 shares of $3 par common stock for a building with a fair market value of $96,000. Purchased a new truck with a fair market value of $29,000. Financed it 100% with a long-term note. Retired short-term notes of $28,000 by issuing 1,900 shares of $3 par common stock. Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term note of $23,000 to Bank of Trust. Identify any non-cash transactions that occurred during the year, and show how they would be reported in the non-cash investing and financing activities section of the statement of cash flows?

Question

Identifying and reporting non-cash transactions

Dirtbikes, Inc. identified the following selected transactions that occurred during the year ended December 31, 2018:

  •  Issued 750 shares of $3 par common stock for cash of $17,000.
  • Issued 5,100 shares of $3 par common stock for a building with a fair market value of $96,000.
  • Purchased a new truck with a fair market value of $29,000. Financed it 100% with a long-term note.
  • Retired short-term notes of $28,000 by issuing 1,900 shares of $3 par common stock.
  • Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term note of $23,000 to Bank of Trust.

Identify any non-cash transactions that occurred during the year, and show how they would be reported in the non-cash investing and financing activities section of the statement of cash flows?

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