Thursday 8 November 2012

Strawn Corporation had these transactions during 2012. Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities. (a) Purchased a machine for $30,000, giving a long-term note in exchange. (b) Issued $50,000 par value common stock for cash. (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. (d) Declared and paid a cash dividend of $13,000. (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. (f) Collected $16,000 of accounts receivable. (g) Paid $18,000 on accounts payable.

Exercise 12-1


 

Strawn Corporation had these transactions during 2012.

Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.

(a)


Purchased a machine for $30,000, giving a long-term note in exchange.



 





(b)


Issued $50,000 par value common stock for cash.



 





(c)


Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.



 





(d)


Declared and paid a cash dividend of $13,000.



 





(e)


Sold a long-term investment with a cost of $15,000 for $15,000 cash.



 





(f)


Collected $16,000 of accounts receivable.



 





(g)


Paid $18,000 on accounts payable.



 


 



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