FINAN&MANAGERIAL ACCT (LL)W/1TERM ACCESS
9th Edition
ISBN: 9781266178566
Author: Wild
Publisher: MCG
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Chapter 12, Problem 14QS
To determine
Introduction: Transactions and income that affects the finances, capital, and liabilities of the organization are known as financing activities. These activities record the
The
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Students have asked these similar questions
Indicate the effect, if any, that each separate transaction has on financing cash
flows.
Note: Select "No Effect" if there is no effect.
a. Long-term notes payable with a carrying value of $17,600 are retired for
$19,900 cash, resulting in a $2,300 loss.
b. Paid cash dividends of $13,600 to common stockholders.
c. Acquired $22,600 worth of machinery in exchange for common stock.
Items
a. Long-term notes payable
b. Dividends
c. Machinery
Amount
$
$
$
Effect on financing
cash flows
19,900 Decrease
13,600 Decrease
22,600 No effect
Indicate the effect, if any, that each separate transaction has on financing cash flows.
Note: Select "No Effect" if there is no effect.
a. Long-term notes payable with a carrying value of $15,000 are retired for $16,000 cash, resulting in a $1,000 loss.
b. Paid cash dividends of $11,000 to common stockholders.
c. Acquired $20,000 worth of machinery in exchange for common stock.
Items
a. Long-term notes payable
b. Dividends
c. Machinery
Amount
Effect on financing
cash flows
Indicate the effect, if any, that each separate transaction has on financing cash flows. (Select "No Effect" if there is no effect.)
a. Long-term notes payable with a carrying value of $15,800 are retired for $17,200 cash, resulting in a $1,400 loss.
b. Paid cash dividends of $11,800 to common stockholders.
c. Acquired $20,800 worth of machinery in exchange for common stock.
Effect on financing
Items
Amount
cash flows
a. Long-term notes payable
b. Dividends
c. Machinery
Chapter 12 Solutions
FINAN&MANAGERIAL ACCT (LL)W/1TERM ACCESS
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - Prob. 21QSCh. 12 - Prob. 22QSCh. 12 - Prob. 23QSCh. 12 - Prob. 24QSCh. 12 - Prob. 25QSCh. 12 - Prob. 26QSCh. 12 - Prob. 27QSCh. 12 - Prob. 28QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1.1AACh. 12 - Prob. 1.2AACh. 12 - Prob. 1.3AACh. 12 - Prob. 1.4AACh. 12 - Prob. 2.1AACh. 12 - Prob. 2.2AACh. 12 - Prob. 2.3AACh. 12 - Prob. 3.1AACh. 12 - Prob. 3.2AACh. 12 - Prob. 3.3AACh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 5BTN
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- Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earningsarrow_forwardIndicate the effect, if any, that each separate transaction has on financing cash flows. a. Notes payable with a carrying value of $15,000 are retired for $16,000 cash, resulting in a $1,000 gain. b. Paid cash dividends of $11,000 to common stockholders. c. Acquired $20,000 worth of machinery in exchange for common stock.arrow_forwardUse the following information to determine cash flows from financing activities. a. Net income was $35,000. b. Issued common stock for $64,000 cash. c. Paid cash dividend of $14,600. d. Paid $50,000 cash to settle a note payable at its $50,000 maturity value. e. Paid $12,000 cash to acquire its treasury stock. f. Purchased equipment for $39,000 cash.arrow_forward
- Use the following information to determine cash flows from financing activities. a. Issued common stock for $40 cash. b. Paid $70 cash to retire a note payable at its $70 maturity value. c. Paid cash dividend of $15. d. Paid $5 cash to acquire its treasury stock.arrow_forwardUse the following information to calculate the net cash provided (inflow) or used by (outflow) from financing activities for the Lulu Corporation: (a) Net income, $10,000 (b) Sold common stock for $40,000 cash (c) Paid cash dividend of $13,000 (d) Repayment of bond payable, $26,000 (e) Purchased equ for $12,000 cash (f) Issued long term mortgage notes payable for $250,000 cash. (Note: in the answer space, write only the number, with no $ signs or commas. That is, if your answer is $1,000, white it as : 1000 ). Answer:arrow_forwardUse the information given below to determine this company's cash flows from financing activities: a. net income was $472,000. b. issued common stock for $75,000 cash. c. Paid cash dividend of $13,000. d. paid $120,000 cash to settle a note payable at its $120,000 maturity value. e. paid $118,000 cash to acquire its treasury stock. f. purchased equipment for $92,000 cash.arrow_forward
- Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000. b. Sold 7,000 shares of $15 par common stock for $30 per share. c. Sold equipment with a book value of $51,800 for $74,600. d. Purchased land for $362,000 cash. e. Purchased a building by paying $75,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $150,000 of bonds at 98. g. Purchased 4,400 shares of $15 par common stock as treasury stock at $28 per share. h. Paid dividends of $1.60 per share. There were 34,000 shares issued and 5,000 shares of treasury stock. Effect Amount a. b. C. d. e. f. g. h.arrow_forwardEffect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000. b. Sold 12,000 shares of $15 par common stock for $23 per share. c. Sold equipment with a book value of $47,400 for $68,300. d. Purchased land for $436,000 cash. e. Purchased a building by paying $58,000 cash and issuing a $110,000 mortgage note payable. f. Sold a new issue of $240,000 of bonds at 97. g. Purchased 3,300 shares of $25 par common stock as treasury stock at $48 per share. h. Paid dividends of $2.50 per share. There were 28,000 shares issued and 4,000 shares of treasury stock. a. b. C. d. e. f. Effect Cash payment Cash receipt Cash receipt Cash payment ✓ Cash payment - ✓ Cash receipt ✔ ✓ ✓ g. Cash payment -✔ h. Cash payment Amount 229,000 ✓ 161,000 X 100000arrow_forwardEffect of Transactions on Cash Flows State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired $260,000 of bonds, on which there was $2,600 of unamortized discount, for $270,000. b. Sold 12,000 shares of $10 par common stock for $19 per share. c. Sold equipment with a book value of $67,800 for $97,600. d. Purchased land for $514,000 cash. e. Purchased a building by paying $54,000 cash and issuing a $120,000 mortgage note payable. f. Sold a new issue of $200,000 of bonds at 97. g. Purchased 3,800 shares of $20 par common stock as treasury stock at $38 per share. h. Paid dividends of $2.20 per share. There were 27,0 shares issued and 4,000 shares of treasury stock. a. b. C. d. e. f. 9. h. Effect Cash payment Cash receipt Cash receipt Cash payment Cash payment Cash receipt Cash payment Cash payment Feedback $ $ $ $ $ $ $ Amount Check My Work Identify the cash flow in each transaction. Is cash being…arrow_forward
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