State the effect (cash receipt or payment and amount) of eachof the following tr

Question

State the effect (cash receipt or payment and amount) of eachof the following transactions considered individually, on cashflows. a. Sold 5,000 shares of $30 par common stock for $90 pershare. b. Sold equipment with a book value of $42,500 for$36,000 c. Purchased land for $250,000 cash. d. Purchased 5,000 shares of $30 par common stock as treasurystock at $60 per share e. Sold a new issue of $100,000 of bonds at 98. f. Paid dividends of $1.50 per share. There were 40,000shares issued and 5,000 shares of treasury stock. State the effect (cash receipt or payment and amount) of eachof the following transactions considered individually, on cashflows. a. Sold 5,000 shares of $30 par common stock for $90 pershare. b. Sold equipment with a book value of $42,500 for$36,000 c. Purchased land for $250,000 cash. d. Purchased 5,000 shares of $30 par common stock as treasurystock at $60 per share e. Sold a new issue of $100,000 of bonds at 98. f. Paid dividends of $1.50 per share. There were 40,000shares issued and 5,000 shares of treasury stock.

Explanation / Answer

a) Cash receipt for 5000*90 = 450000 b) Cash receipt for 36000 c) Payment for 250000 d) Payment for 5000*60 = 300000 e) Cash receipt of 100000 f) Payment of 1.50*(40000 - 5000) = 52500

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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