Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 9

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 $500,000 of bonds, on which there was $5,000 of unamortized discount, for $525,000.
b. Sold 6,000 shares of $20 par common stock for $30 per share.
c. Sold equipment with a book value of $98,200 for $117,500.
d. Purchased land for $322,000 cash.
e. Purchased a building by paying $75,000 cash and issuing a $62,500 mortgage note payable.
f. Sold a new issue of $300,000 of bonds at 101.
g. Purchased 2,500 shares of $40 par common stock as treasury stock at $50 per share.
h. Paid dividends of $2.00 per share. There were 50,000 shares issued and 10,000 shares of treasury stock.