Q: Rachael Ray Corporation had the following transactions. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock for $20,000. 3. Recorded depreciation of $17,000.
1. Sold land (cost $12,000) for $15,000.
2. Issued common stock for $20,000.
3. Recorded depreciation of $17,000.
4. Paid salaries of $9,000.
5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000.
6. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.
Instructions
For each transaction above,
(a) Prepare the journal entry, and
(b) Indicate how it would affect the statement of cash flows.
Step by Step Solution
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1 a Cash 15000 Land 12000 Gain on Disposal 3000 b The cash receipt 15000 is reported in the investin... View full answer

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