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

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State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows:
a. Sold 5,000 shares of $30 par common stock for $45 per share.
b. Sold equipment with a book value of $42,500 for $41,000.
c. Purchased land for $120,000 cash.
d. Purchased 5,000 shares of $30 par common stock as treasury stock at $50 per share.
e. Sold a new issue of $100,000 of bonds at 101.
f. Paid dividends of $1.50 per share. There were 30,000 shares issued and 5,000 shares of treasury stock.
g. Retired $500,000 of bonds, on which there was $2,500 of unamortized discount, for $501,000.
h. Purchased a building by paying $30,000 cash and issuing a $90,000 mortgage note payable.

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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Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

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