For Exercise 16-2, note (1) the section of the statement the transaction would impact (0,l or F), (2) whether it is an inflow or outflow and (3) the cash amount that would be reported EXERCISE 16-2 Effect of transactions on cash flows State the effect (cash receipt or payment and amount) of each of the following tras actions, considered individually, on cash flows: a. Sold 5,000 shares of $30 par common stock for $45 per share. b. Sold equipment with a book value of $42,500 for $41,000. c. Purchased land for $120,000 cash. d. Purchased 5,000 shares of $30 par common stock as treasury stock at $50 per share e. Sold a new issue of $100,000 of bonds at 101. f. Paid dividends of $1.50 per share. There were 30,000 shares issued and 5,00 shares of treasury stock. g. Retired $500,000 of bonds, on which there was $2,500 of unamortized discount for $501,000. h. Purchased a building by paying $30,000 cash and issuing a $90,000 mortgage noe payable. Objective 1 /b. Cash receipt, $41,000
For Exercise 16-2, note (1) the section of the statement the transaction would impact (0,l or F), (2) whether it is an inflow or outflow and (3) the cash amount that would be reported EXERCISE 16-2 Effect of transactions on cash flows State the effect (cash receipt or payment and amount) of each of the following tras actions, considered individually, on cash flows: a. Sold 5,000 shares of $30 par common stock for $45 per share. b. Sold equipment with a book value of $42,500 for $41,000. c. Purchased land for $120,000 cash. d. Purchased 5,000 shares of $30 par common stock as treasury stock at $50 per share e. Sold a new issue of $100,000 of bonds at 101. f. Paid dividends of $1.50 per share. There were 30,000 shares issued and 5,00 shares of treasury stock. g. Retired $500,000 of bonds, on which there was $2,500 of unamortized discount for $501,000. h. Purchased a building by paying $30,000 cash and issuing a $90,000 mortgage noe payable. Objective 1 /b. Cash receipt, $41,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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