Account Title Bonds payable Common stock Year 2 $ 690,000 217,000 35, 000 87,300 Year 1 Treasury stock Retained earnings $1,015,000 130,000 15,000 62,900 Additional information regarding transactions occurring during Year 2: 1. Fox River, Inc. issued $48,900 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Fox River, Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $35,600. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows
Account Title Bonds payable Common stock Year 2 $ 690,000 217,000 35, 000 87,300 Year 1 Treasury stock Retained earnings $1,015,000 130,000 15,000 62,900 Additional information regarding transactions occurring during Year 2: 1. Fox River, Inc. issued $48,900 of bonds during Year 2. The bonds were issued at face value. All bonds retired were retired at face value. 2. Common stock did not have a par value. 3. Fox River, Inc. uses the cost method to account for treasury stock. 4. The amount of net income shown on the Year 2 income statement was $35,600. Required a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2 statement of cash flows b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2 statement of cash flows. c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2 statement of cash flows. d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2 statement of cash flows
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Long-Term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 12.2APR
Related questions
Question
![leets of
Account Title
Bonds payable
Common stock
Year 2
Year 1
$1,015,000
130,000
15,000
62,900
$ 690,000
217, 000
Treasury stock
Retained earnings
35,000
87, 300
Additional information regarding transactions occurring during Year 2:
1. Fox River, Inc. issued $48,900 of bonds during Year 2 The bonds were issued at face value. All bonds
retired were retired at face value.
2. Common stock did not have a par value.
3. Fox River, Inc. uses the cost method to account for treasury stock.
4. The amount of net income shown on the Year 2 income statement was $35,600.
Required
a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2
statement of cash flows.
b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2
statement of cash flows.
c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2
statement of cash flows.
d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2
statement of cash flows,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F10045c57-f6a1-4edc-b5b1-236c8b690e35%2Fb6d990f5-112b-48aa-be66-03aa184309ef%2Fnu5tga7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:leets of
Account Title
Bonds payable
Common stock
Year 2
Year 1
$1,015,000
130,000
15,000
62,900
$ 690,000
217, 000
Treasury stock
Retained earnings
35,000
87, 300
Additional information regarding transactions occurring during Year 2:
1. Fox River, Inc. issued $48,900 of bonds during Year 2 The bonds were issued at face value. All bonds
retired were retired at face value.
2. Common stock did not have a par value.
3. Fox River, Inc. uses the cost method to account for treasury stock.
4. The amount of net income shown on the Year 2 income statement was $35,600.
Required
a. Determine the amount of cash flow for the retirement of bonds that should appear on the Year 2
statement of cash flows.
b. Determine the amount of cash flow from the issue of common stock that should appear on the Year 2
statement of cash flows.
c. Determine the amount of cash flow for the purchase of treasury stock that should appear on the Year 2
statement of cash flows.
d. Determine the amount of cash flow for the payment of dividends that should appear on the Year 2
statement of cash flows,
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