Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $500,000 of bonds, on which there was $5,000 of unamortized discount, for $525,000. Sold 6,000 shares of $20 par common stock for $30 per share. Sold equipment with a book value of $98,200 for $117,500. Purchased land for $322,000 cash. Purchased a building by paying $75,000 cash and issuing a $62,500 mortgage note payable. Sold a new issue of $300,000 of bonds at 101. Purchased 2,500 shares of $40 par common stock as treasury stock at $50 per share. Paid dividends of $2.00 per share. There were 50,000 shares issued and 10,000 shares of treasury stock.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Effect of Transactions on Cash Flows State the effect (cash receipt or payment and
amount) of each of the following transactions, considered individually, on cash
flows:
Retired $500,000 of bonds, on which there was $5,000 of unamortized discount, for
$525,000.
Sold 6,000 shares of $20 par common stock for $30 per share.
Sold equipment with a book value of $98,200 for $117,500.
Purchased land for $322,000 cash.
Purchased a building by paying $75,000 cash and issuing a $62,500 mortgage note
payable.
Sold a new issue of $300,000 of bonds at 101.
Purchased 2,500 shares of $40 par common stock as treasury stock at $50 per share.
Paid dividends of $2.00 per share. There were 50,000 shares issued and 10,000
shares of treasury stock.
Transcribed Image Text:Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: Retired $500,000 of bonds, on which there was $5,000 of unamortized discount, for $525,000. Sold 6,000 shares of $20 par common stock for $30 per share. Sold equipment with a book value of $98,200 for $117,500. Purchased land for $322,000 cash. Purchased a building by paying $75,000 cash and issuing a $62,500 mortgage note payable. Sold a new issue of $300,000 of bonds at 101. Purchased 2,500 shares of $40 par common stock as treasury stock at $50 per share. Paid dividends of $2.00 per share. There were 50,000 shares issued and 10,000 shares of treasury stock.
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