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 $290,000 of bonds, on which there was $2,900 of unamortized discount, for $302,000.

Sold 12,000 shares of $30 par common stock for $73 per share.

Sold equipment with a book value of $44,900 for $64,700.

Purchased land for $442,000 cash.

Purchased a building by paying $56,000 cash and issuing a $100,000 mortgage note payable.

Sold a new issue of $320,000 of bonds at 99.

Purchased 4,900 shares of $25 par common stock as treasury stock at $48 per share.

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

Explanation / Answer

State the effect of cash receipt or cash payment and amount :

No Transaction Effect Amount 1 Retired $290,000 of bonds, on which there was $2,900 of unamortized discount, for $302,000 Cash payment -302000 2 Sold 12,000 shares of $30 par common stock for $73 per share. Cash receipt 876000 3 Sold equipment with a book value of $44,900 for $64,700. Cash receipt 64700 4 Purchased land for $442,000 cash. Cash payment -442000 5 Purchased a building by paying $56,000 cash and issuing a $100,000 mortgage note payable. Cash payment -56000 6 Sold a new issue of $320,000 of bonds at 99. Cash receipt 316800 7 Purchased 4,900 shares of $25 par common stock as treasury stock at $48 per share. Cash payment -235200 8 Paid dividends of $2.30 per share. There were 20,000 shares issued and 3,000 shares of treasury stock. Cash payment -39100

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