Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
bartleby

Concept explainers

bartleby

Videos

Textbook Question
Chapter 21, Problem 14GI

Dunn Company recognized a $5,000 unrealized holding gain on investment in Starbucks’s long-term bonds during 2019. The company classified its investment as an available-for-sale security. How would this information be reported on a statement of cash flows prepared using the indirect method?

Blurred answer
Students have asked these similar questions
Jim Sox Company owns debt securities classified as available for sale which were acquired in 2019 at face value of $17 million. During 2021, the fair value of those securities increased by $220,000. How should the accountants for Jim Sox Company report this increase in Sox’s 2021 statement of cash flows using the indirect presentation of cash flows from operating activities?   a. As a positive cash flow from investing activities b. As a negative adjustment to reconcile net income to net cash from operating activities c. As a positive cash flow from financing activities d. the increase will not be reported on the statement of cash flows using the indirect presentation of cash flows from operating activities
BTS Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BTS should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii.  Depreciation on plant that manufactures goods for sale, 6,000.iv.  Payment of income tax on gain on sale of treasury bills, 2,000.v.  Issued 500 ordinary shares for 50,000.vi.  Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000
In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the following information:    ($ in millions) Fair value of shares issued in a stock dividend $ 116.0   Payment for the early extinguishment oflong-term bonds (book value: $93.0 million)   98.0   Proceeds from the sale of treasury stock (cost: $29.0 million)   34.0   Gain on sale of land   3.8   Proceeds from sale of land   11.4   Purchase of Microsoft common stock   166.0   Declaration of cash dividends   63.0   Distribution of cash dividends declared in 2020   60.0       2. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2021?

Chapter 21 Solutions

Intermediate Accounting: Reporting And Analysis

Ch. 21 - Prob. 11GICh. 21 - Prob. 12GICh. 21 - Prob. 13GICh. 21 - Dunn Company recognized a 5,000 unrealized holding...Ch. 21 - Jordan Company recognized a 5,000 unrealized...Ch. 21 - Indicate how a company computes the amount of...Ch. 21 - Prob. 17GICh. 21 - Prob. 18GICh. 21 - Prob. 19GICh. 21 - Which of the following would be considered a cash...Ch. 21 - In a statement of cash flows (indirect method),...Ch. 21 - The net cash provided by operating activities in...Ch. 21 - The retirement of long-term debt by the issuance...Ch. 21 - Prob. 5MCCh. 21 - Selected information from Brook Corporations...Ch. 21 - Prob. 7MCCh. 21 - Prob. 8MCCh. 21 - Which of the following need not be disclosed in a...Ch. 21 - The following information was taken from Oregon...Ch. 21 - Prob. 1RECh. 21 - Prob. 2RECh. 21 - Given the following information, convert Cardinal...Ch. 21 - Given the following information, convert Robin...Ch. 21 - In the current year, Harrisburg Corporation had...Ch. 21 - Tifton Co. had the following cash transactions...Ch. 21 - Tifton Co. had the following cash transactions...Ch. 21 - Trenton Corporation has the following items....Ch. 21 - Prob. 9RECh. 21 - In the current year, Harrisburg Corporation...Ch. 21 - Providence Company sold equipment for 25,000 cash....Ch. 21 - Annapolis Corporation paid 270,000 to retire bonds...Ch. 21 - Given the following information, compute Lemon...Ch. 21 - Prob. 14RECh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Visual Inspection Noble Companys accounting...Ch. 21 - Prob. 4ECh. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Partially Completed Spreadsheet Hanks Company has...Ch. 21 - Spreadsheet The following 2019 information is...Ch. 21 - Spreadsheet and Statement The following 2019...Ch. 21 - Fixed Asset Transactions The following is an...Ch. 21 - Retirement of Debt Moore Company is preparing its...Ch. 21 - Interest and Income Taxes Staggs Company has...Ch. 21 - Investments On October 4, 2019, Collins Company...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Investing Activities and Depreciable Assets...Ch. 21 - Spreadsheet and Statement The following 2019...Ch. 21 - (Appendix 21.1) Operating Cash Flows The following...Ch. 21 - (Appendix 21.1) Statement of Cash Flows The...Ch. 21 - (Appendix 21.1) Visual Inspection The following...Ch. 21 - Prob. 22ECh. 21 - Classification of Cash Flows A company's statement...Ch. 21 - Prob. 2PCh. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Partially Completed Spreadsheet The following...Ch. 21 - Spreadsheet and Statement of Cash Flows The...Ch. 21 - Prob. 7PCh. 21 - Spreadsheet from Trial Balance Heinz Companys post...Ch. 21 - Prepare Ending Balance Sheet On December 31, 2019,...Ch. 21 - Infrequent Transactions The following transactions...Ch. 21 - Prob. 11PCh. 21 - Comprehensive Angel Company has prepared its...Ch. 21 - Comprehensive The following are Farrell...Ch. 21 - (Appendix 21.1) Operating Cash Flows Refer to the...Ch. 21 - (Appendix 21.1) Statement of Cash Flows The...Ch. 21 - Comprehensive The following are Farrell...Ch. 21 - (Appendix 21.1) Comprehensive The following are...Ch. 21 - Prob. 18PCh. 21 - Financial Statement Interrelationships Prepare an...Ch. 21 - Statement of Cash Flows A friend of yours is...Ch. 21 - Prob. 3CCh. 21 - Operating, Investing, and Financing Activities The...Ch. 21 - Prob. 5CCh. 21 - Spreadsheet Method The spreadsheet method is...Ch. 21 - Prob. 7CCh. 21 - Inflows and Outflows Alfred Engineering Company is...Ch. 21 - Ethics and Cash Flows You are the accountant for...
Knowledge Booster
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • Jungkook Company reported total cash and cash equivalents of P3,650,000 on December 31, 2020. The following items are included in its cash and cash equivalents.   Investment securities of P200,000, these investments are actively traded in the market.   Jungkook Company has agreed to maintain a cash balance of P100,000 in one of its banks (this amount is not legally restricted as to withdrawal).   Investment securities of P500,000. These securities are commercial paper. The term of the papers is six months, and they were purchased on November 1 at which time they had three months to go until they mature. How much is the correct amount of cash and cash equivalents that Jungkook Company should report in its December 31, 2020 statement of financial position?
    [The following information applies to the questions displayed below.] In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the following information:   ($ in millions) Fair value of shares issued in a stock dividend $ 96.0   Payment for the early extinguishment oflong-term bonds (book value: $88.0 million)   93.0   Proceeds from the sale of treasury stock (cost: $24.0 million)   29.0   Gain on sale of land   3.3   Proceeds from sale of land   9.9   Purchase of Microsoft common stock   156.0   Declaration of cash dividends   58.0   Distribution of cash dividends declared in 2020   54.0     Required:1. In Rapid Pac’s statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2021? (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)…
    BT21 Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BT21 should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii.  Depreciation on plant that manufactures goods for sale, 6,000.iv.  Payment of income tax on gain on sale of treasury bills, 2,000.v.  Issued 500 ordinary shares for 50,000.vi.  Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000.
  • Tabares Corporation had these transactions during 2020.Indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity. (a)   Issued $50,000 par value common stock for cash.    Investing ActivitiesNoncash Investing and/or Financing ActivitiesOperating ActivitiesFinancing Activities           (b)   Purchased a machine for $30,000, giving a long-term note in exchange.    Investing ActivitiesOperating ActivitiesNoncash Investing and/or Financing ActivitiesFinancing Activities           (c)   Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.    Operating ActivitiesNoncash Investing and/or Financing ActivitiesFinancing ActivitiesInvesting Activities           (d)   Declared and paid a cash dividend of $18,000.    Operating ActivitiesFinancing ActivitiesNoncash Investing and/or Financing ActivitiesInvesting Activities           (e)…
    You are the new accountant for 12th National Bank and are preparing its 2019 statement of cash flows. The bank reports net income of $75,800 on its 2019 income statement. Included in this net income are the following items: $6,700 gain on sale of trading securities, $1,200 unrealized holding gain on trading securities, and $5,100 loss on sale of securities available for sale. Among its 2019 transactions, the bank sold trading securities with a carrying value of $22,900 for $29,600, and purchased trading securities for $65,200. The bank sold securities available for sale with a cost (and carrying value) of $58,700 for $53,600, and purchased securities available for sale for $39,400. It also made routine 90-day loans of $47,500 to customers and collected $20,000 principal on these customer loans. As a result of the preceding information, the bank’s trading securities account increased by $43,500, the securities available for sale account decreased by $19,300, and the loans receivable…
    In preparation for developing its statement of cash flows for the year ended December 31, 2021, Rapid Pac, Inc., collected the following information:                                                                                                   ($ in millions)Fair value of shares issued in a stock dividend                                    $ 65Payment for the early extinguishment oflong-term bonds (book value: $97 million)                                           102Proceeds from the sale of treasury stock (cost: $17 million)                   22Gain on sale of land                                                                                  4Proceeds from sale of land                                                                      12Purchase of Microsoft common stock                                                   160Declaration of cash dividends                                                                 44Distribution of cash dividends declared in 2020…
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning
    Fundamentals Of Financial Management, Concise Edi...
    Finance
    ISBN:9781337902571
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning
    Fundamentals Of Financial Management, Concise Edi...
    Finance
    ISBN:9781337902571
    Author:Eugene F. Brigham, Joel F. Houston
    Publisher:Cengage Learning
    The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License