Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 13, Problem 3DQ
To determine
Indicate the reporting of transaction “Issued $2,000,000 of common stock in exchange for $2,000,000 of fixed asset” on the statement of cash flows.
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A corporation issued $2, 000, 000 of common stock in exchangẹ for $2, 000, 000 of fixed assets. Where would this transaciton be reported on the statement of cashflows
XYZ Company used the direct method to prepare the statement of cash flows. The entity had the following cash flows during 2021:
January 1 cash balance 1,000,000
Cash receipts from issuance of ordinary shares 1,208,000
Cash receipts from customers 1,640,000
Proceeds from sale of treasury shares (cost – P720,000) 800,000
Cash receipts from dividends on long-term investments 80,000
Cash receipts from repayment of loan made to another company 640,000
Cash payments to suppliers 1,080,000
Cash paid to redeem own shares 1,200,000
Cash paid for interest on long-term notes 120,000
Cash payments for operating expenses 320,000
Cash payments for dividends 200,000
Cash payment for income taxes 144,000
Cash paid to purchase land 1,040,000
Required: Prepare statement of cash flows at December 31, 2021.
A long-term investment in bonds with a cost of $500,000 was sold for $600,000 cash. (a) What was the gain or loss on the sale? (b) What was the effect of the transaction on cash flows? (c) How would the transaction be reported on the statement of cash flows if cash flows from operating activitiesare reported by the indirect method?
Chapter 13 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 1BECh. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Prob. 4BECh. 13 - Prob. 5BECh. 13 - Prob. 6BECh. 13 - Prob. 7BECh. 13 - Prob. 8BECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Prob. 18ECh. 13 - Prob. 19ECh. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Prob. 22ECh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Prob. 3PACh. 13 - Prob. 4PACh. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1PBCh. 13 - Prob. 2PBCh. 13 - Prob. 3PBCh. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1ADMCh. 13 - Prob. 2ADMCh. 13 - Prob. 3ADMCh. 13 - Prob. 4ADMCh. 13 - Prob. 1TIFCh. 13 - Financial condition Tidewater Inc., a retailer,...
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- On December 31, Harrison Company reports the following assets: Which of these are included in, and excluded from, cash on the companys balance sheet?arrow_forwardFor the year ended December 31, 2021, a corporation had cash flow provided by operating activities of P40,000, cash flow used by investing activities of P30,000, and cash flow used by financing activities of P20,000. The Statement of Cash Flows would show a: a. net decrease of P10,000 in cash and cash and cash equivalents b. net increase of P10,000 in cash and cash and cash equivalents c. net decrease of P30,000 in cash and cash and cash equivalents d. net increase of P50,000 in cash and cash equivalents e. none of the abovearrow_forwardA corporation uses the indirect method for preparing the statement of cash flows. A fixed asset has been sold for $21,376 representing a gain of $3,249. The value in the operating activities section regarding this event would be a.$18,127 b.$3,249 c.$24,625 d.$21,376arrow_forward
- A corporation reported cash of $28,600, total assets of $469,000, and current liabilities of $160,745 on its balance sheet. Its common-size percent for cash equals:arrow_forwardAn entity uses the direct method to prepare its statement of cashflows. The net cash provided by (used in) investing activities * The company had the following cash flows during 2002 Cash receipt from issuance of ordinary shares Cash receipts from customers Cash receipts from dividends on long-term investments Cash receipts from repayment of loan made to another entity Cash payments for wages and other operating expenses Cash payment for insurance Cash payments for dividends Cash payment for taxes 400,000 200,000 30,000 220,000 120,000 10,000 20,000 40,000 Cash payment to purchase land 80,000 Your answerarrow_forwardA long term investment in bonds with a cost of $500000 was sold for $600000 cash. (a) what was the gain or loss on the sale? (b) what was the effect of the transaction on cash flows? (c) how should the transaction be reported on the statement of cash flows if cash flows from operating activities are reported by the indirect method?arrow_forward
- A corporation uses the indirect method of preparing the statement of cash flows. A fixed asset has been sold for $20,609, representing a gain of $3,278. The value of this transaction appearing in the operating activities section of the statement of cash flows is a.$17,331 b.$23,887 c.$(3,278) d.$20,609arrow_forwardA corporation uses the Indirect method of preparing the statement of cash flows. A fixed asset has been sold for $25,656, representing a gain of $3,094. The value of this transaction appearing in the operating activities section of the statement of cash flows is Oa. $20,750 Ob. $22,562 Oc. $25,656 Od. $(3,094)arrow_forwardFor the year ended December 31, 2021, a corporation had cash flow provided by operating activities of P40,000, cash flow used by investing activities of P30,000, and cash flow used by financing activities of P20,000. The Statement of Cash Flows would show a: net decrease of P10,000 in cash and cash and cash equivalents net increase of P10,000 in cash and cash and cash equivalents net decrease of P30,000 in cash and cash and cash equivalents net increase of P50,000 in cash and cash equivalents none of the abovearrow_forward
- Paneous Corporation’s comparative balance sheet for current assets and liabilities was as follows: ****SEE ATTACHED PHOTO FOR INFORMATION**** Adjust net income of $351,000 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. •• ? ••arrow_forwardEntities are required to issue general purpose financial statements at least a. Once a month b. Once a year c. Twice a year d. Once a quarter This statement shows the entity's assets, liabilities, and equity of a particular date a. Statement of profit or loss and other comprehensive income b. Statement of financial position c. Statement of cash flows d. Notes to financial statements In the Statement of cash flows, the most important source of cash that serves as barometer about the health of business cash flows, come from a. Cash flows from investing activities b. Cash flows from operating activities c. Cash flows from investing activities d. Cash flows from borrowing activitiesarrow_forwardThe Q Ltd.provides the following information about its activities in the year 2021.Marketable securities purchased: $45,000Treasury stock purchased: $56,000Inventory purchased: $412,000Land sold: $95,000Machinery purchased: $278,000Common stock issued: $168,000Compute net cash provided by investing activities to be reported in the statement of cash flows of Q Ltd.arrow_forward
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