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:
A. Retired $500,000 of bonds, on which there was $4,000 of unamortized discount, for $510,000.
B. Sold 20,000 shares of $5 par common stock for $30 per share.
C. Sold equipment with a book value of $68,900 for $72,400.
D. Purchased land for $825,000 cash.
E. Purchased a building by paying $30,000 cash and issuing a $570,000 mortgage note payable.
F. Sold a new issue of $400,000 of bonds at 98.
G. Purchased 10,000 shares of $10 par common stock as treasury stock at $22.50 per share.
H. Paid dividends of $1.25 per share. There were 1,000,000 shares issued and 180,000 shares of treasury stock.

Respuesta :

Solution :

            EFFECT                          AMOUNT ($)

a.   Cash payment                       $510,000

b.   Cash receipt                          $600,000

c.   Cash receipt                          $72,400

d.  Cash payment                        $825,000

e.  Cash payment                        $30,000

f.   Cash receipt                           $390,000

g. Cash payment                         $225,000

h. Cash payment                         $1475000