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(Solved): Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each ...




Effect of Transactions on Cash Flows
State the effect (cash receipt or payment and amount) of each of the following transacti
Effect of Transactions on Cash Flows State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: a. Retired \( \$ 190,000 \) of bonds, on which there was \( \$ 1,900 \) of unamortized discount, for \( \$ 198,000 \). b. Sold 7,000 shares of \( \$ 30 \) par common stock for \( \$ 61 \) per share. c. Sold equipment with a book value of \( \$ 62,300 \) for \( \$ 89,700 \). d. Purchased land for \( \$ 505,000 \) cash. e. Purchased a building by paying \( \$ 92,000 \) cash and issuing a \( \$ 100,000 \) mortgage note payable. f. Sold a new issue of \( \$ 150,000 \) of bonds at 99 . g. Purchased 3,000 shares of \( \$ 45 \) par common stock as treasury stock at \( \$ 87 \) per share. h. Paid dividends of \( \$ 2.20 \) per share. There were 19,000 shares issued and 3,000 shares of treasury stock.


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a. Cash payment = $198,000 b. Cash receipt from sale of common stock = Number of common shares issued x Issue price pe
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