Mountain Water Corp. issued common stock of $28,000 to pay off long-term notes payable of $28,000. In what section(s) would these transactions be recorded? a. Financing activities payment of note, $(28,000) b. Financing activities cash receipt, $28,000 c. Non-cash investing and financing activities, $28,000 d. Both a and b are correct.

Mountain Water Corp. issued common stock of $28,000 to pay off long-term notes payable of $28,000. In what section(s) would these transactions be recorded? a. Financing activities payment of note, $(28,000) b. Financing activities cash receipt, $28,000 c. Non-cash investing and financing activities, $28,000 d. Both a and b are correct.

Name: Mountain Water Corp. issued common stock of $28,000 to pay off long-te
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Mountain Water Corp. issued common stock of $28,000 to pay off long-term notes payable of $28,000. In what section(s) would these transactions be recorded?a. Financing activities payment of note, $(28,000)b. Financing activities cash receipt, $28,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1EB: Provide journal entries to record each of the following transactions. For each, identify whether the...

See similar textbooks

Similar questions

The following accounts and corresponding balances were drawn from Dexter Company's Year 2 and Year 1 year-end balance sheets. Account Title Bonds payable Year 1 $300,500 282,300 Year 2 $213,200 373,300 Common stock Other information drawn from the accounting records: 1. Dividends paid during the period amounted to $44,800. 2. There were no bond liabilities issued during the period. Required a. Compute the amount of cash flow associated with the repayment of bond liabilities. b. Compute the amount of cash flow associated with the issue of common stock. c. Prepare the financing activities section of the statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the amount of cash flow associated with the repayment of bond liabilities. Cash flow for the repayment of bond liabilities
XYZ provided the following financial information: XYZBalance SheetAs of 12/31/19 Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402 and net sales of: $4,272,431 Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g. 52.75.): Current Ratio ? times…
The following accounts and corresponding balances were drawn from Dexter Company's Year 2 and Year 1 year-end balance sheets. Account Title Bonds payable Common stock Year 1 $301,600 282,500 Year 2 $212,700 371,800 Other information drawn from the accounting records: 1. Dividends paid during the period amounted to $31,700. 2. There were no bond liabilities issued during the period. Required a. Compute the amount of cash flow associated with the repayment of bond liabilities. b. Compute the amount of cash flow associated with the issue of common stock. c. Prepare the financing activities section of the statement of cash flows. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the amount of cash flow associated with the repayment of bond liabilities. Cash flow for the repayment of bond liabilities
Using the following information, prepare a properly classified Statement of Financial Position in ACCOUNT FORM 0ther current liabilities 125,890 Bonds payable 5,000,000 Cash 2,500,000 Current income tax payable 589,660 Intangible assets 2,654,700 Investment in associate 1,890,600 Investment in equity securities 3,650,400 Investment property 1,968,740 Long-term notes payable 2,000,000 Merchandise inventory 2,789,000 Office supplies 400,000 Other noncurrent assets 600,000 Other noncurrent liabilities 750,000 Owner's Equity 18,211,250 Prepayments and other current assets 385,000 Property, plant, and equipment 9,856,250 Short-term notes payable 320,000 Accounts payables 1,562,890 Account receivables 1,865,000
9. Which of the following shall not be classified as cash equivalent?a. Equity securities bought three months before year endb. Three months treasury billsc. 90 days money market instrumentd. Three year treasury bills bought 60 days before its maturity 10. Which of the following should be presented as part of investing activities of statement of cash flow?a. Issuance of bonds in exchange of equipmentb. Cash payment for securities held for tradingc. Cash receipts from sale of equipmentd. Cash receipts from sale of trading securities 11. Financing activities involves transactions related toa. Current assets used to pay current obligationb. Transactions between shareholders’ and entityc. Short term liabilities used to finance the company’s operationd. Assets used in production of entity’s product 12. Which of the following statements are true?I. Investing activities are presented using direct method in the statement of cash flows.II. Financing activities are presented using direct method…
Three commonly used measures of solvency are the debt-to-equity ratio, the times interest earned ratio, and the cash coverage ratio. a. Issued shares in exchange for equipment for $500,000. b. Issued bonds at par for $1 million cash. c. Previously declared dividends are paid in cash. d. Accrued interest expense is recorded. e. A customer pays money on his Account receivable. Required: For each of the above transactions, determine whether the measure will increase, decrease, or not change. Assume that all ratios are higher than 1. (Hint: Dividends paid are considered a financing activity.) Debt-to-equity ratio Cash Coverage ratio Times Interest Transaction Earned ratio а. b. C. d. е. Decrease Increase No change
Provide journal entries to record each of the following transactions. For each, identify whether the transaction represents a source of cash (S), a use of cash (U), or neither (N). A. Paid $22,000 cash on bonds payable. B. Collected $12,600 cash for a note receivable. C. Declared a dividend to shareholders for $16,000, to be paid in the future. D. Paid $26,500 to suppliers for purchases on account. E. Purchased treasury stock for $18,000 cash.
Presented below are the captions of Faulk Company’s balance sheet. Indicate where each of the following items would be classified. Balance Sheet Accounts Balance Sheet Classification 1. Preferred stock. 2. Goodwill. 3. Salaries and wages payable 4. Accounts payable. 5. Buildings. 6. Equity investments (to be sold within one year). 7. Current maturity of long-term debt. 8. Premium on bonds payable. 9. Allowance for doubtful accounts. 10. Accounts receivable. 11. Cash surrender value of life insurance. 12. Notes payable (due next year). 13. Supplies. 14. Common stock. 15. Land. 16. Bond sinking fund. 17. Inventory. 18. Prepaid insurance. 19. Bonds payable. 20. Income taxes payable.
1. The following accounts appeared on the partial Balance Sheet of Brandy Inc.: Accounts Payable Accounts Receivable $ 5,500 2,300 2,820 3,000 8,140 18,560 18,760 100 Bank Loan Cash Common Stock Inventory Long-term debt Machinery What is the total amount of all assets (rounded to the nearest dollar)?
A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for interest. The amount reported as a use of cash under cash flows from financing activities is a. $0; this is an investing activity. b. $0; this is an operating activity. c. $73,440. d. $68,000. e. $5,440.
We are given the following information for Pettit Corporation. Sales (credit) Cash Inventory Current liabilities Asset turnover Current ratio Debt-to-assets ratio Receivables turnover $2,068,000 150,000 923,000 763,000 a. Accounts receivable b. Marketable securities c. Capital assets. d. Long-term debt $ Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Calculate the following balance sheet items: LA LA LA $ $ 1.00 times 2.60 times $ 40 % 4 times 517000
1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What total amount should be reported as as current assets?