State how each of the following items would be reflected on a statement of cash flows. (a)

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State how each of the following items would be reflected on a statement of cash flows.
(a) Securities classified as available for sale were purchased for $4,200.
(b) Buildings were acquired for $210,000, the company paying $60,000 cash and signing an 11% mortgage note, payable in five years, for the balance.
(c) Cash of $54,200 was paid to purchase a business whose assets consisted of inventory, $16,700; furniture and fixtures, $8,400; land and buildings, $20,100; and goodwill, $9,000.
(d) A cash dividend of $2,600 was declared in the current period, payable at the beginning of the next period.
(e) Accounts Payable shows a decrease for the period of $1,250.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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