The comparative balance sheets for Vaughn Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 1. 2. Additional data related to 2020 are as follows. 3. December 31 2020 $33,200 12,200 8,900 2,900 30,100 45,300 20,200 5,000 6,300 $107,800 $91,500 12,100 -0- -0- $3,000 $4,500 2,000 4,500 6,000 2,900 5,000 4,000 25,000 -0- 5,000 -0- 2019 $13,000 10,100 3,000 31,000 43,000 20,800 $107,800 33,000 6,600 $91,500 Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5.000

The comparative balance sheets for Vaughn Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 1. 2. Additional data related to 2020 are as follows. 3. December 31 2020 $33,200 12,200 8,900 2,900 30,100 45,300 20,200 5,000 6,300 $107,800 $91,500 12,100 -0- -0- $3,000 $4,500 2,000 4,500 6,000 2,900 5,000 4,000 25,000 -0- 5,000 -0- 2019 $13,000 10,100 3,000 31,000 43,000 20,800 $107,800 33,000 6,600 $91,500 Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5.000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 14E

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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
The retirement of long-term debt by the issuance of common stock should be presented in a statement of cash flows as a:
Determine the effect on the statement of cash flows. Section: Operating, Investing, Financing or N/A Effect: Add, Subtracting, No effect Section Effect Bonds payable converted into common stock issuance of notes receivable amortization of bond premium the decrease in deferred tax asset issuance of stock dividends
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