Dirtbikes, Inc., identified the following selected transactions that occurred during 2012: (a) Issued 1,250 shares of $2
Question:
(a) Issued 1,250 shares of $2 par common stock for cash of $26,000.
(b) Issued 5,500 shares of $2 par common stock for a building valued at $101,000.
(c) Purchased new company truck with FMV of $28,000. Financed it 100% with a long-term note.
(d) Paid short-term notes of $23,000 by issuing 2,400 shares of $2 par common stock.
(e) Paid long-term note of $10,500 to Bank of Tallahassee. Issued new long-term note of $21,000 to Bank of Trust.
Requirement
1. Identify any noncash transactions that occurred during the year and show how they would be reported in the noncash section of the cash flow statement.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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