1. Prepare a statement of cash flows using JSFDs balance sheet, income statement and the additional information is provided below: (CLO5)

a. Retired notes payable through a $12,000 cash payment

b. See problem 2 for cash received from issuing common and preferred stock, cash paid to purchase shares of treasury stock and cash dividends.

c. Sold plant assets yielding a gain of $25,000

d. Purchased $160,000 plant assets paying cash

(#2)

Upon going public, JSFD charter authorized 32,000,000 shares of common stock and JSFDs common stock carries a par value of $1 per share. JSFD has authorization from the state to issue 5,000 shares of preferred stock, which has a par value of $60 per share. JSFD issued the following stock, prepare the necessary journal entries. (CLO2)

Issued 42,000 shares of common stock at par value

Issued 6,000 shares of common stock with an issue price of $3 per share

JSFD purchased 4,000 shares of previously issued common stock, paying $6 per share.

Issued 2,500 shares of $60 par, 5% preferred stock for $62 per share

Sold 1,200 of treasury stock for $4 per share

JSFD declares a $25,000 cash dividend

JSFD issues 120,000 common stock in exchange for land that costs $120,000.