Ealeigh Reardan Chapter 13 Statement of Cash Flows Ex 132 Ef

Ealeigh Reardan Chapter 13: Statement of Cash Flows Ex 13-2 Effect of transactions on cash flows Oby, 1 State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash ows A. Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000. Sold 20,000 shares of $5 par common stock for $22 per share. C. Sold equipment with a book value of $55,800 for $60,000. D. Purchased land for $650,000 cash. E. Purchased a building by paying $s0,000 cash and issuing a $4s0,000 mortgage note payable F. Sold a new issue of $500,000 of bonds at 98. G. Purchased 10,000 shares of $10 par common stock as treasury stock at $33.25 per H. Pald dividends of $1.50 per share. There were 1,000,000 shares issued and 120,000 shares of treasury stock EX 13-3 MacBook Air 0

Solution

Effect Amount Explanation a) Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000. Cash payment $411,000.00 b)Sold 20,000 shares of $5 par common stock for $22 per share. Cash receipt $440,000.00 20,000 shares x $22 c) Sold equipment with a book value of $55,800 for $60,000. Cash receipt $60,000.00 d) Purchased land for $650,000 cash Cash payment $650,000.00 e)Purchased a building by paying $50,000 cash and issuing a $450,000 mortgage note payable. Cash payment $50,000.00 f)Sold a new issue of $500,000 of bonds at 98. Cash receipt $490,000.00 $500,000 x 98% g)Purchased 10,000 shares of $10 par common stock as treasury stock at $33.25 per share. Cash payment $332,500.00 10,000 shares x $33.25 h) Paid dividends of $1.50 per share. There were 1000,000 shares issued and 120,000 shares of treasury stock. Cash payment $1,320,000.00 (1000000-120000) x $1.50