FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Chapter 12, Problem 12.1DIE
To determine

Introduction:

Statement of cash flows

Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.

Type of activities reported in statement of cash flows:

FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS, Chapter 12, Problem 12.1DIE

Figure (1)

To Classify: Transactions by type of cash flow activity.

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State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:a. Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000.b. Sold 20,000 shares of $5 par common stock for $22 per share.c. Sold equipment with a book value of $55,800 for $60,000.d. Purchased land for $650,000 cash.e. Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable.f. Sold a new issue of $500,000 of bonds at 98.g. Purchased 10,000 shares of $40 par common stock as treasury stock at $50 per share.h. Paid dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 shares of treasury stock.
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. ​  a.  Issued 750shares of $3 par common stock for cash of $17,000. b.  Issued 5,100 shares of $3 par common stock for a building with a fair market value of $96,000. c.  Purchased new truck with a fair market value of $29,000. Financed it​ 100% with a​ long-term note. d. Retired​ short-term notes of $28,000 by issuing 1,900 shares of $3 par common stock. e.  Paid​ long-term note of $10,500 to Bank of Tallahassee. Issued new​ long-term note of $23,000 to Bank of Trust.   Dirtbikes, Inc. Statement of Cash Flows (Partial) Year Ended December 31, 2024   Non-cash Investing and Financing Activities:                                     Total Non-cash Investing and Financing Activities
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.b. Sold 7,000 shares of $30 par common stock for $53 per share.c. Sold equipment with a book value of $59,700 for $86,000.d. Purchased land for $339,000 cash.e. Purchased a building by paying $64,000 cash and issuing a $90,000 mortgage note payable.f. Sold a new issue of $300,000 of bonds at 97.g. Purchased 3,600 shares of $20 par common stock as treasury stock at $37 per share.h. Paid dividends of $1.90 per share. There were 24,000 shares issued and 4,000 shares of treasury stock.
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License