Laurent Company had these transactions during 2014. (a) Issued CHF50,000 par value ordinary shares for cash. (b)

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Laurent Company had these transactions during 2014.
(a) Issued CHF50,000 par value ordinary shares for cash.
(b) Purchased a machine for CHF30,000, giving a long-term note in exchange.
(c) Issued CHF200,000 par value ordinary shares upon conversion of bonds having a face value of CHF200,000.
(d) Declared and paid a cash dividend of CHF18,000.
(e) Sold a long-term investment with a cost of CHF15,000 for CHF15,000 cash.
(f) Collected CHF16,000 of accounts receivable.
(g) Paid CHF18,000 on accounts payable.


Instructions
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or non-cash investing and financing activities.

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...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Financial Accounting IFRS

ISBN: 978-1118285909

2nd edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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