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State the effect (cash receipt or payment and amount) of each of the following t

ID: 2349622 • Letter: S

Question

State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:

a.) Sold equipment with a book value of $65,000 for $83,000.
b.) Sold a new issue of $400,000 of bonds at 98.
c.) Retired $550,000 of bonds, on which there was $5,000 of unamortized discount, for $560,000.
d.) Purchased 2,000 shares of $25 par common stock as treasury stock at $50 per share.
e.) Sold 5,000 shares of $20 par common stock for $100 per share.
f.) Paid dividends of $1.00 per share. There were 50,000 shares issued and 6,000 shares of treasury stock.
g.) Purchased land for $320,000 cash.
h.) Purchased a building by paying $40,000 cash and issuing a $60,000 mortgage note payable.

Enter all amounts as positive numbers.

So far all I know is:
a.) 83000

Explanation / Answer

a. Cash receipt for $83,000. b. Cash receipt $400,000 c.cash payment $560,000. d.Payment for 2000x50= $100000 e. Cash receipt for 5,000x100= $500000 f.Payment of 1x(50000-6000)= $44000 g. Payment for $320,000 h.Payment for $40,000

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