The following information was drawn from the year-end balance sheets of Solomon River, Inc.AccountTitleYear 2Year 1Bonds$750,000 $1,005,000payableCommon stock 213,000121,000Treasury27,5005,500stockRetained62,20088,900earningsAdditional 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 stock4. 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 cashflows.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 toReq EDDetermine the amount of cash flow for the retirement of bonds, for the issue of commonstock, for the purchase of treasury stock and for the payment of dividends that shouldappear on the Year 2 statement of cash flowsShow less ACash flow for the retirement ofа.bondsCash flow from the issue ofcommon stockCash flow for the purchase ofC.treasury stockCash flow for the payment ofdividendsReq A to DReq E

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Asked Dec 3, 2019
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I need D answerd please. 

The following information was drawn from the year-end balance sheets of Solomon River, Inc.
Account
Title
Year 2
Year 1
Bonds
$750,000 $1,005,000
payable
Common stock 213,000
121,000
Treasury
27,500
5,500
stock
Retained
62,200
88,900
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
Determine the amount of cash flow for the retirement of bonds, for the issue of common
stock, for the purchase of treasury stock and for the payment of dividends that should
appear on the Year 2 statement of cash flows
Show less A
Cash flow for the retirement of
а.
bonds
Cash flow from the issue of
common stock
Cash flow for the purchase of
C.
treasury stock
Cash flow for the payment of
dividends
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 2 Year 1 Bonds $750,000 $1,005,000 payable Common stock 213,000 121,000 Treasury 27,500 5,500 stock Retained 62,200 88,900 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 Determine the amount of cash flow for the retirement of bonds, for the issue of common stock, for the purchase of treasury stock and for the payment of dividends that should appear on the Year 2 statement of cash flows Show less A Cash flow for the retirement of а. bonds Cash flow from the issue of common stock Cash flow for the purchase of C. treasury stock Cash flow for the payment of dividends Req A to D Req E

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Expert Answer

Step 1

Dividend Paid

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to re-invest the profit in the business called retained earnings and pay a proportion of the profit as a dividend to shareholders.

Step 2

d.  Calculation of cash flow for the payment of dividend t...

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Beginning Retained Eamings Net Income Ending Retained Earnings Dividend Paid $62,200 $32,700 -$88,900 $6,000

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