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

Question

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

Retired $220,000 of bonds, on which there was $2,200 of unamortized discount, for $229,000.

Sold 7,000 shares of $25 par common stock for $62 per share.

Sold equipment with a book value of $47,500 for $68,400.

Purchased land for $302,000 cash.

Purchased a building by paying $79,000 cash and issuing a $120,000 mortgage note payable.

Sold a new issue of $320,000 of bonds at 97.

Purchased 6,200 shares of $20 par common stock as treasury stock at $38 per share.

Paid dividends of $2.30 per share. There were 20,000 shares issued and 3,000 shares of treasury stock.

Effect Amount a. Cash payment $ b. Cash receipt $ c. Cash receipt $ d. Cash payment $ e. Cash payment $ f. Cash receipt $ g. Cash payment $ h. Cash payment $

Explanation / Answer

Determine effect on cash flow :

Effect Amount a Cash payment (229000) b Cash receipt (7000*62) 434000 c Cash receipt 68400 d Cash payment (302000) e Cash payment (79000) f Cash receipt (320000*97/100) 310400 g Cash payment (6200*38) (235600) h Cash payment (20000-3000)*2.30 (39100)

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.