Effect of Transactions on Cash FlowsState the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.Sold 7,000 shares of $15 par common stock for $37 per share.Sold equipment with a book value of $58,600 for $84,400.Purchased land for $490,000 cash.Purchased a building by paying $88,000 cash and issuing a $120,000 mortgage note payable.Sold a new issue of $140,000 of bonds at 97.Purchased 3,500 shares of $30 par common stock as treasury stock at $57 per share.Paid dividends of $1.50 per share. There were 20,000 shares issued and 3,000 shares of treasury stock. EffectAmountCash payment$ 333,000а.b.Cash receipt vCash receipt v84,400с.d.Cash payment$ 490,000е.Cash payment v88,000f.Cash receipt vg.Cash payment vh.Cash payment v00%24%24%24%24%24%24

Cash flows refer to the inflow and outflow of cash in a business. When payments are made there is a…

Answered: Effect of Transactions on Cash Flows…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Effect 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:

Retired $320,000 of bonds, on which there was $3,200 of unamortized discount, for $333,000.
Sold 7,000 shares of $15 par common stock for $37 per share.
Sold equipment with a book value of $58,600 for $84,400.
Purchased land for $490,000 cash.
Purchased a building by paying $88,000 cash and issuing a $120,000 mortgage note payable.
Sold a new issue of $140,000 of bonds at 97.
Purchased 3,500 shares of $30 par common stock as treasury stock at $57 per share.
Paid dividends of $1.50 per share. There were 20,000 shares issued and 3,000 shares of treasury stock.