How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Manal Elkhoshkhany Your Own Question
Manal Elkhoshkhany
Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9843
Experience:  More than 5000 online tutoring sessions.
3708793
Type Your Homework Question Here...
Manal Elkhoshkhany is online now
A new question is answered every 9 seconds

13-2State of the effect ( cash receipt or payment and amount)

Resolved Question:

13-2

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

  1. sold a new issue of $200,000 of bonds at 99
  2. purchased 4,000 shares of $35 per common stock on treasury stock of 470 per share
  3. sold 10,000shares of $20 par common stock for $50 per share
  4. purchased building by paying $60,000 cash and issuing a $100,000mortgage note payable
  5. retired $250,000, on which there was $2,500 of unamortized discount,for $260,000
  6. purchased land for $320,000 cash
  7. paid dividends of $2.00 per share . there were 25,000 shares issued and 4,000 shares of treasury stock.
  8. Sold equipment with a book value of $50,000 for $72,000

 

13-3

Identify the type of cash flow activity for each of the following events( operating,investing or financing)

  1. issued common stock
  2. redeemed bonds
  3. issued preferred stock
  4. purchased patents
  5. net income
  6. paid cash dividends
  7. purchased treasury stock
  8. sold long term investment
  9. sold equipment
  10. purchased building
  11. issued bonds

 

13-4

indicate whether each of the following would be added or deducted from net incomein determining net cash flow from operating activities by the indirect method:

a decrease in account receivable

b. increase in note payable due in 90 days to vendors

c. decrease in salaries payable

d. decrease in prepaid expenses

e. gain on retirement of long term debt

f decrease in accounts payable

g. increase in notes receivable due in 90 days from customers.

h. depreciation of fixed assets

i. increase in merchandise inventory

j. amortization of patent

k. loss on disposal of fixed assets.

 

 

13-14

On the basis of the details of the following bonds payable and related discount accounts, indicate the items to be reported in the financing section of the statement of cash flows, assuming the gain or loss on retiring the bonds.

Account Bonds payable

 

 

 

 

Account No

 

 

 

 

 

Balance

Date

Item

Debit

Credit

Debit

Credit

2010

 

 

 

 

 

Jan 1

Balance

 

 

 

500,000

3

Retire bonds

100,000

 

 

400,000

July 30

Issue bonds

 

300,000

 

700,000

 

Account discount on pond payable

 

 

 

 

Account No

 

 

 

 

 

Balance

Date

Item

Debit

Credit

Debit

Credit

2010

 

 

 

 

 

Jan 1

Balance

 

 

22,500

3

Retire bonds

 

8,000

14,500

July 30

Issue bonds

20,000

 

34,500

Dec 31

Amortize discount

 

1,750

32,750

 

 

 

13-11

on the basic of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:

 

account land

 

 

 

 

Account No

 

 

 

 

 

Balance

Date

Item

Debit

Credit

Debit

Credit

2010

 

 

 

 

 

Jan 1

Balance

 

 

1,200,000

 

Feb 5

Purchased for cash

380,000

 

1,580,000

 

Oct 30

Sold for $210,000

 

180,000

1,400,000

 

 

 

13-6the net income reported on the income statement for the current year was $120,000. Depreciation recorded on equipment and a building amounted to$62,500 for the year balance of the current asset and current liability accounts at the beginning and end of the year are as follows:

 

 

End of year

Beginning of year

Cash

56,000

59,500

Account receivable (net)

71,000

73,400

Inventories

140,000

126,500

Prepaid expenses

7,800

8,400

Account payable (merchandise creditors)

62,600

66,400

Salaries payable

9,000

8,250

 

  1. prepare the cash flows from operating activities section of thes statement of cash flow, using the indirect method
  2. if the direct method had been used , would the net cash flow from operating activities have been the same, explain?
Submitted: 7 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 7 years ago.

Hello aiwais

 

When is the due date on these please?

Customer: replied 7 years ago.
due date is tuesday tommorrow
Expert:  Manal Elkhoshkhany replied 7 years ago.

Ok, I think I am done though, but can you please check the figures in the last problem, is the net income $120,000 or $210,000?

Customer: replied 7 years ago.
net income is $210,000
Expert:  Manal Elkhoshkhany replied 7 years ago.
THIS ANSWER IS LOCKED!

You need to spend $3 to view this post. Add Funds to your account and buy credits.
Manal Elkhoshkhany and other Homework Specialists are ready to help you

Related Homework Questions