Effect of Transactions on Cash Flows State the effect (cash receipt or cash paym

Question

Effect of Transactions on Cash Flows

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

Retired $340,000 of bonds, on which there was $3,400 of unamortized discount, for $354,000.

Sold 12,000 shares of $25 par common stock for $50 per share.

Sold equipment with a book value of $50,800 for $73,200.

Purchased land for $312,000 cash.

Purchased a building by paying $74,000 cash and issuing a $110,000 mortgage note payable.

Sold a new issue of $270,000 of bonds at 97.

Purchased 4,400 shares of $35 par common stock as treasury stock at $63 per share.

Paid dividends of $1.90 per share. There were 30,000 shares issued and 5,000 shares of treasury stock.

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

Explanation / Answer

CEffect of transaction :

Effect Amount a Cash payment -354000 b Cash receipt 600000 c Cash receipt 73200 d Cash payment -312000 e Cash payment -74000 f Cash receipt 261900 g Cash payment -277200 h Cash payment -47500

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