E16-25 Identifying and reporting non-cash transactions Dirtbikes, Inc. identified the following selected transactions that occurred during the year ended December 31, 2018:a. Issued 750 shares of $3 par common stock for cash of $17,000.b. Issued 5,100 shares of $3 par common stock for a building with a fair market value of $96,000.c. Purchased new truck with a fair market value of $29,000. Financed it 100% with a long-term note.d. Retired short-term notes of $28,000 by issuing 1,900 shares of $3 par common stock.e. Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term note of $23,000 to Bank of Trust. Identify any non-cash transactions that occurred during the year, and show how they would be reported in the non-cash investing and financing activities section of the statement of cash flows. The Statement of Cash FlowSE16-25 Identifying and reporting non-cash transactionsLearning Objective 2Dirtbikes, Inc. identified the following selected transactions that occurred during theyear ended December 31, 2018:Total Non-cash Inv. and Fin.Act. $153,000a. Issued 750 shares of $3 par common stock for cash of $17,000.b. Issued 5,100 shares of $3 par common stock for a building with a fair market valueof $96,000.c. Purchased new truck with a fair market value of $29,000. Financed it 100% with along-term note.d. Retired short-term notes of $28,000 by issuing 1,900 shares of $3 parcommon stock.e. Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term noteof $23,000 to Bank of Trust.Identify any non-cash transactions that occurred during the year, and show how theywould be reported in the non-cash investing and financing activities section of thestatement of cash flows.

Out of transactions listed, following would not be involving cash and hence would be non cash…

Answered: Identifying and reporting non-cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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E16-25 Identifying and reporting non-cash transactions Dirtbikes, Inc. identified the following selected transactions that occurred during the year ended December 31, 2018:

a. Issued 750 shares of $3 par common stock for cash of $17,000.

b. Issued 5,100 shares of $3 par common stock for a building with a fair market value of $96,000.

c. Purchased new truck with a fair market value of $29,000. Financed it 100% with a long-term note.

d. Retired short-term notes of $28,000 by issuing 1,900 shares of $3 par common stock.

e. Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term note of $23,000 to Bank of Trust. Identify any non-cash transactions that occurred during the year, and show how they would be reported in the non-cash investing and financing activities section of the statement of cash flows.

The Statement of Cash FlowS
E16-25 Identifying and reporting non-cash transactions
Learning Objective 2
Dirtbikes, Inc. identified the following selected transactions that occurred during the
year ended December 31, 2018:
Total Non-cash Inv. and Fin.
Act. $153,000
a. Issued 750 shares of $3 par common stock for cash of $17,000.
b. Issued 5,100 shares of $3 par common stock for a building with a fair market value
of $96,000.
c. Purchased new truck with a fair market value of $29,000. Financed it 100% with a
long-term note.
d. Retired short-term notes of $28,000 by issuing 1,900 shares of $3 par
common stock.
e. Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term note
of $23,000 to Bank of Trust.
Identify any non-cash transactions that occurred during the year, and show how they
would be reported in the non-cash investing and financing activities section of the
statement of cash flows.

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