The Statement of Cash Flows 85 25 Identifying and reporting non-cash transactions Motorcross, Inc. identified the following selected transactions that occurred during 2016: Learning Objective 2 Issued 850 shares of $5 par common stock for cash of $21,000. Total Non-cash Inv. and L. Issued 5,600 shares of $5 par common stock for a building with a fair market value Fin. Act. $161,000 of $99,000. c Purchased new truck with a fair market value of $36,000. Financed it 100% with a long-term note. 1. Retired short-term notes of $26,000 by issuing 2,500 shares of $5 par common stock. - Paid long-term note of $8,500 to Bank of Tallahassee. Issued new long-term note of $17,000 to Bank of Trust. lentify any non-cash transactions that occurred during the year, and show how they ould be reported in the non-cash investing and financing activities section of the
The Statement of Cash Flows 85 25 Identifying and reporting non-cash transactions Motorcross, Inc. identified the following selected transactions that occurred during 2016: Learning Objective 2 Issued 850 shares of $5 par common stock for cash of $21,000. Total Non-cash Inv. and L. Issued 5,600 shares of $5 par common stock for a building with a fair market value Fin. Act. $161,000 of $99,000. c Purchased new truck with a fair market value of $36,000. Financed it 100% with a long-term note. 1. Retired short-term notes of $26,000 by issuing 2,500 shares of $5 par common stock. - Paid long-term note of $8,500 to Bank of Tallahassee. Issued new long-term note of $17,000 to Bank of Trust. lentify any non-cash transactions that occurred during the year, and show how they ould be reported in the non-cash investing and financing activities section of the
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 32BE
Related questions
Question
Fill in the green boxes with the correct answers
![Identify any non-cash transactions that occurred during the year and show how they would be reported in the
non-cash section of the cash flow statement.
Solution:
MOTOCROSS, INC.
Statement of Cash Flows-Partial
Year Ended December 31, 2016
Non-cash Investing and Financing Activities:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff673b95-0f20-484e-9a4e-6a2eb67500f0%2Fad8116e7-1151-4a61-b8af-02b9b4e01c38%2Fw7btayr_processed.png&w=3840&q=75)
Transcribed Image Text:Identify any non-cash transactions that occurred during the year and show how they would be reported in the
non-cash section of the cash flow statement.
Solution:
MOTOCROSS, INC.
Statement of Cash Flows-Partial
Year Ended December 31, 2016
Non-cash Investing and Financing Activities:
![E16-25 Identifying and reporting non-cash transactions
The Statement of Cash Flows 857
Mororcross, Inc. identified the following selected transactions that occurred during 2016:
Learning Objective 2
Issued 850 shares of $5 par common stock for cash of $21,000.
Total Non-cash Inv, and
h Issued 5,600 shares of $5 par common stock for a building with a fair market value
Fin. Act. $161,000
of $99,000.
c Purchased new truck with a fair market value of $36,000. Financed it 100% with
a long-term note.
d. Retired short-term notes of $26,000 by issuing 2,500 shares of $5 par common stock.
e. Paid long-term note of $8,500 to Bank of Tallahassee. Issued new long-term note
of $17,000 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.
Learning Objective 3](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fff673b95-0f20-484e-9a4e-6a2eb67500f0%2Fad8116e7-1151-4a61-b8af-02b9b4e01c38%2Fgkel67p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E16-25 Identifying and reporting non-cash transactions
The Statement of Cash Flows 857
Mororcross, Inc. identified the following selected transactions that occurred during 2016:
Learning Objective 2
Issued 850 shares of $5 par common stock for cash of $21,000.
Total Non-cash Inv, and
h Issued 5,600 shares of $5 par common stock for a building with a fair market value
Fin. Act. $161,000
of $99,000.
c Purchased new truck with a fair market value of $36,000. Financed it 100% with
a long-term note.
d. Retired short-term notes of $26,000 by issuing 2,500 shares of $5 par common stock.
e. Paid long-term note of $8,500 to Bank of Tallahassee. Issued new long-term note
of $17,000 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.
Learning Objective 3
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning