The following information was drawn from the year-end balance sheets of Solomon River, Inc.AccountTitleYear 1Year 2Bonds$750,000 $1,005,000payableCommon stock 213,000Treasury121,00027,5005,500stockRetained88,90062,200earningsAdditional information regarding transactions occurring during Year 2:1. Solomon River, Inc. issued $42,300 of bonds during Year 2. The bonds were issued at face value. All bonds retiredwere retired at face value.2. Common stock did not have a par value.3. Solomon River, Inc. uses the cost method to account for treasury stock.4. The amount of net income shown on the Year 2 income statement was $32,700.Requireda. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cashflows.b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement ofcash flows.c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement ofcash flows.d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cashflowse. Prepare the financing activities section of the Year 2 statement of cash flows.Complete this question by entering your answers in the tabs below.Req A toReq EDPrepare the financing activities section of the year 2 statement of cash flows. (Cashoutflows should be indicated with minus sign.)Cash Flows from financingactivitiesNet cash flow from financing$0activitiesReq A to DReq E

Question
Asked Dec 3, 2019
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The following information was drawn from the year-end balance sheets of Solomon River, Inc.
Account
Title
Year 1
Year 2
Bonds
$750,000 $1,005,000
payable
Common stock 213,000
Treasury
121,000
27,500
5,500
stock
Retained
88,900
62,200
earnings
Additional information regarding transactions occurring during Year 2:
1. Solomon River, Inc. issued $42,300 of bonds during Year 2. The bonds were issued at face value. All bonds retired
were retired at face value.
2. Common stock did not have a par value.
3. Solomon River, Inc. uses the cost method to account for treasury stock.
4. The amount of net income shown on the Year 2 income statement was $32,700.
Required
a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash
flows.
b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of
cash flows.
c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of
cash flows.
d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash
flows
e. Prepare the financing activities section of the Year 2 statement of cash flows.
Complete this question by entering your answers in the tabs below.
Req A to
Req E
D
Prepare the financing activities section of the year 2 statement of cash flows. (Cash
outflows should be indicated with minus sign.)
Cash Flows from financing
activities
Net cash flow from financing
$
0
activities
Req A to D
Req E
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The following information was drawn from the year-end balance sheets of Solomon River, Inc. Account Title Year 1 Year 2 Bonds $750,000 $1,005,000 payable Common stock 213,000 Treasury 121,000 27,500 5,500 stock Retained 88,900 62,200 earnings Additional information regarding transactions occurring during Year 2: 1. Solomon River, Inc. issued $42,300 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Solomon River, Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $32,700. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows. b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows e. Prepare the financing activities section of the Year 2 statement of cash flows. Complete this question by entering your answers in the tabs below. Req A to Req E D Prepare the financing activities section of the year 2 statement of cash flows. (Cash outflows should be indicated with minus sign.) Cash Flows from financing activities Net cash flow from financing $ 0 activities Req A to D Req E

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Expert Answer

Step 1

Since the student has posted multiple requirements, we will answer only the first three requirements. Thank You.

Step 2

Requirement a:

 

Compute the cash flow from retirement of bonds.

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Bonds Retired Beginning Bonds Payable Bonds Issued - Ending Bonds Payable = $ 1,005,000 $42,300 $750,000 $297,300

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Step 3

Requirement b:

 

Compute the cash flow from issuance of...

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Common Stock Issued =Ending Common Stock - Beginning Common Stock = $213,000 – $121,000 = $92,000

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