Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 15, Problem 2E
Effect of transactions on
State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows:
- a. Retired $500,000 of bonds, on which there was $4,000 of unamortized discount, for $510,000.
- b. Sold 20,000 shares of $5 par common stock for $30 per share.
- c. Sold equipment with a book value of $68,900 for $72,400.
- d. Purchased land for $825,000 cash.
- e. Purchased a building by paying $30,000 cash and issuing a $570,000 mortgage note payable.
- f. Sold a new issue of $400,000 of bonds at 98.
- g. Purchased 10,000 shares of $10 par common stock as
treasury stock at $22.50 per share. - h. Paid dividends of $1.25 per share. There were 1,000,000 shares issued and 180,000 shares of treasury stock.
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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:
a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000.
b. Sold 7,000 shares of $15 par common stock for $30 per share.
c. Sold equipment with a book value of $51,800 for $74,600.
d. Purchased land for $362,000 cash.
e. Purchased a building by paying $75,000 cash and issuing a $120,000 mortgage note payable.
f. Sold a new issue of $150,000 of bonds at 98.
g. Purchased 4,400 shares of $15 par common stock as treasury stock at $28 per share.
h. Paid dividends of $1.60 per share. There were 34,000 shares issued and 5,000 shares of treasury stock.
Effect
Amount
a.
b.
C.
d.
e.
f.
g.
h.
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:
a. Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000.
b. Sold 12,000 shares of $15 par common stock for $23 per share.
c. Sold equipment with a book value of $47,400 for $68,300.
d. Purchased land for $436,000 cash.
e. Purchased a building by paying $58,000 cash and issuing a $110,000 mortgage note payable.
f. Sold a new issue of $240,000 of bonds at 97.
g. Purchased 3,300 shares of $25 par common stock as treasury stock at $48 per share.
h. Paid dividends of $2.50 per share. There were 28,000 shares issued and 4,000 shares of treasury stock.
a.
b.
C.
d.
e.
f.
Effect
Cash payment
Cash receipt
Cash receipt
Cash payment
✓
Cash payment - ✓
Cash receipt
✔
✓
✓
g. Cash payment -✔
h. Cash payment
Amount
229,000 ✓
161,000 X
100000
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:
a. Retired $260,000 of bonds, on which there was $2,600 of unamortized discount, for
$270,000.
b. Sold 12,000 shares of $10 par common stock for $19 per share.
c. Sold equipment with a book value of $67,800 for $97,600.
d. Purchased land for $514,000 cash.
e. Purchased a building by paying $54,000 cash and issuing a $120,000 mortgage note payable.
f. Sold a new issue of $200,000 of bonds at 97.
g. Purchased 3,800 shares of $20 par common stock as treasury stock at $38 per share.
h. Paid dividends of $2.20 per share. There were 27,0 shares issued and 4,000 shares of
treasury stock.
a.
b.
C.
d.
e.
f.
9.
h.
Effect
Cash payment
Cash receipt
Cash receipt
Cash payment
Cash payment
Cash receipt
Cash payment
Cash payment
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Amount
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Chapter 15 Solutions
Managerial Accounting
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Fully depreciated equipment costing 50,000 was...Ch. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 1BECh. 15 - Prob. 2BECh. 15 - Prob. 3BECh. 15 - Prob. 4BECh. 15 - Land transactions on the statement of cash flows...Ch. 15 - Prob. 6BECh. 15 - Prob. 7BECh. 15 - Prob. 8BECh. 15 - Prob. 9BECh. 15 - Prob. 1ECh. 15 - Effect of transactions on cash flows State the...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 18ECh. 15 - Prob. 19ECh. 15 - Prob. 20ECh. 15 - Prob. 21ECh. 15 - Prob. 22ECh. 15 - Prob. 1PACh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1PBCh. 15 - Prob. 2PBCh. 15 - Prob. 3PBCh. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1MADCh. 15 - Prob. 2MADCh. 15 - Prob. 3MADCh. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Financial condition Tidewater Inc., a retailer,...Ch. 15 - Prob. 4TIF
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