Horngren's Financial & Managerial Accounting, The Financial Chapters, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780133851731
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 14, Problem 7QC
Mountain Water Corp. issued common stock of $28,000 to pay off long-term notes payable of $28,000. In what section(s) would these transactions be recorded?
a. Financing activities payment of note, $(28,000)
b. Financing activities cash receipt, $28,000
c. Non-cash investing and financing activities, $28, 000
d. Both a and b are correct.
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Students have asked these similar questions
Using the following information, prepare a properly classified Statement of Financial Position in ACCOUNT FORM
0ther current liabilities
125,890
Bonds payable
5,000,000
Cash
2,500,000
Current income tax payable
589,660
Intangible assets
2,654,700
Investment in associate
1,890,600
Investment in equity securities
3,650,400
Investment property
1,968,740
Long-term notes payable
2,000,000
Merchandise inventory
2,789,000
Office supplies
400,000
Other noncurrent assets
600,000
Other noncurrent liabilities
750,000
Owner's Equity
18,211,250
Prepayments and other current assets
385,000
Property, plant, and equipment
9,856,250
Short-term notes payable
320,000
Accounts payables
1,562,890
Account receivables
1,865,000
Presented below are the captions of Faulk Company’s balance sheet. Indicate where each of the following items would be classified.
Balance Sheet Accounts
Balance Sheet Classification
1.
Preferred stock.
2.
Goodwill.
3.
Salaries and wages payable
4.
Accounts payable.
5.
Buildings.
6.
Equity investments (to be sold within one year).
7.
Current maturity of long-term debt.
8.
Premium on bonds payable.
9.
Allowance for doubtful accounts.
10.
Accounts receivable.
11.
Cash surrender value of life insurance.
12.
Notes payable (due next year).
13.
Supplies.
14.
Common stock.
15.
Land.
16.
Bond sinking fund.
17.
Inventory.
18.
Prepaid insurance.
19.
Bonds payable.
20.
Income taxes payable.
The following accounts and corresponding balances were drawn from Dexter Company’s Year 2 and Year 1 year-end balance sheets.
Account Title
Year 2
Year 1
Bonds payable
$212,100
$300,800
Common stock
373,200
275,300
Other information drawn from the accounting records:
Dividends paid during the period amounted to $42,100.
There were no bond liabilities issued during the period.
Requireda. Compute the amount of cash flow associated with the repayment of bond liabilities.b. Compute the amount of cash flow associated with the issue of common stock.c. Prepare the financing activities section of the statement of cash flows.
Chapter 14 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters, Student Value Edition (5th Edition)
Ch. 14 - The purposes of the statement of cash flows are to...Ch. 14 - The main categories of cash flow activities are a....Ch. 14 - Operating activities are most closely related to...Ch. 14 - Which item does not appear on a statement of cash...Ch. 14 - Leather Shop earned net income of 57,000 after...Ch. 14 - The Plant Assets account and Accumulated...Ch. 14 - Mountain Water Corp. issued common stock of 28,000...Ch. 14 - Prob. 8QCCh. 14 - Prob. 9AQCCh. 14 - If accrued liabilities increased during the year,...
Ch. 14 - Prob. 1RQCh. 14 - How does the statement of cash flows help users of...Ch. 14 - Describe the three basic types of cash flow...Ch. 14 - What types of transactions are reported in the...Ch. 14 - Prob. 5RQCh. 14 - Prob. 6RQCh. 14 - Explain why depreciation expense, depletion...Ch. 14 - Prob. 8RQCh. 14 - If current assets other than cash increase, what...Ch. 14 - If current liabilities increase, what is the...Ch. 14 - Prob. 11RQCh. 14 - Prob. 12RQCh. 14 - Prob. 13RQCh. 14 - Prob. 14RQCh. 14 - Prob. 15ARQCh. 14 - Prob. 16BRQCh. 14 - Describing the purposes of the statement of cash...Ch. 14 - Prob. 14.2SECh. 14 - Classifying items on the indirect statement of...Ch. 14 - Computing cash flows from operating...Ch. 14 - Prob. 14.5SECh. 14 - Prob. 14.6SECh. 14 - Prob. 14.7SECh. 14 - Prob. 14.8SECh. 14 - Prob. 14.9SECh. 14 - Prob. 14.10SECh. 14 - Preparing a statement of cash flows using the...Ch. 14 - Prob. 14.12SECh. 14 - Preparing the direct method statement of cash...Ch. 14 - Prob. 14.14SECh. 14 - Prob. 14.15SECh. 14 - Classifying cash flow items Consider the following...Ch. 14 - Prob. 14.17ECh. 14 - Prob. 14.18ECh. 14 - Prob. 14.19ECh. 14 - Prob. 14.20ECh. 14 - Prob. 14.21ECh. 14 - Prob. 14.22ECh. 14 - Prob. 14.23ECh. 14 - Prob. 14.24ECh. 14 - Prob. 14.25ECh. 14 - Prob. 14.26ECh. 14 - Prob. 14.27ECh. 14 - Prob. 14.28ECh. 14 - Prob. 14.29ECh. 14 - Prob. 14.30ECh. 14 - Using a spreadsheet to prepare the statement of...Ch. 14 - Prob. 14.32APCh. 14 - Prob. 14.33APCh. 14 - Prob. 14.34APCh. 14 - Prob. 14.35APCh. 14 - Preparing the statement of cash flows----direct...Ch. 14 - Prob. 14.37APCh. 14 - Prob. 14.38APCh. 14 - Prob. 14.39BPCh. 14 - Prob. 14.40BPCh. 14 - Prob. 14.41BPCh. 14 - Prob. 14.42BPCh. 14 - Prob. 14.43BPCh. 14 - Prob. 14.44BPCh. 14 - Using a spreadsheet to prepare the statement of...Ch. 14 - Prob. 14.46CPCh. 14 - Prob. 14.1CTDCCh. 14 - Moss Exports is having a bad year. Net income is...Ch. 14 - Details about a company's cash flows appear in a...
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