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

Question

Effect of Transactions on Cash Flows

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

Sold equipment with a book value of $44,100 for $63,500.

Sold a new issue of $180,000 of bonds at 99.

Retired $310,000 of bonds, on which there was $3,100 of unamortized discount, for $322,000.

Purchased 4,700 shares of $20 par common stock as treasury stock at $40 per share.

Sold 7,000 shares of $25 par common stock for $39 per share.

Paid dividends of $2.30 per share. There were 34,000 shares issued and 5,000 shares of treasury stock.

Purchased land for $545,000 cash.

Purchased a building by paying $70,000 cash and issuing a $110,000 mortgage note payable.

Effect Amount a. Select Cash payment or Cash receipt $ b. SelectCash payment or Cash receipt $ c. SelectCash payment or Cash receipt $ d. SelectCash payment or Cash receipt $ e. SelectCash payment or Cash receipt $ f. SelectCash payment or Cash receipt $ g. SelectCash payment or Cash receipt $ h. SelectCash payment or Cash receiptI $

Explanation / Answer

Effect Amount a cash receipt 63500 b cash receipt    [180000*9/100] 178,200 c cash payment 322,000 d cash payment     [4700*40] 188,000 e cash receipt    [7000*39] 273,000 f cash payment     [(34000-5000)*2.3] 66700 g cash payment 545,000 h cash payment 70000

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