a.Sold equipment with a book value of $65,000 for $83,000. b.Sold a new issue of

Question

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.

Explanation / Answer

Add to cash flow from investing activities of 83,000. Add to cash flow from financing activities of 400,000*.98= 392,000. Subtract from cash flow from financing activities of 560,000. Subtract from cash flow from financing activities of 100,000. Add to cash flow from financing activities of 500,000. Subtract from cash flow from financing activities of 44,000* 1.00= 44,000 Subtract from cash flow from investing activities of 320,000. Subtract from cash flow from investing activities of 40,000. (The 60,000 note is footnoted.)

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