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
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:
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.
Chapter 12 Solutions
FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - Prob. 4QCh. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Why is it necessary to use comparative balance...Ch. 12 - Prob. 8QCh. 12 - Prob. 9QCh. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - Prob. 12QCh. 12 - Prob. 13QCh. 12 - Prob. 14QCh. 12 - Prob. 15QCh. 12 - Prob. 17QCh. 12 - Prob. 18QCh. 12 - Prob. 19QCh. 12 - Prob. 20QCh. 12 - Prob. 21QCh. 12 - Prob. 22QCh. 12 - Prob. 12.2BECh. 12 - Prob. 12.3BECh. 12 - Prob. 12.8BECh. 12 - Prob. 12.10BECh. 12 - The management of Uhuru Inc. is trying to decide...Ch. 12 - Prob. 12.13BECh. 12 - Prob. 12.1DIECh. 12 - Prob. 12.11ECh. 12 - Prob. 12.13ECh. 12 - Prob. 12.12APCh. 12 - Prob. 12.2EYCTCh. 12 - Prob. 12.3EYCTCh. 12 - Prob. 12.8EYCTCh. 12 - Prob. 12.9EYCTCh. 12 - Prob. 12.1IECh. 12 - Prob. 12.2IECh. 12 - Prob. 12.3IE
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