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: retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. sold 7,000 shares of $30 par common stock for $69 per share. sold equipment with a book value of $45,100 for $64,900. purchased land for $417,000 cash. purchased a building by paying $85,000 cash and issuing a $100,000 mortgage note payable. sold a new issue of $320,000 of bonds at 99. purchased 5,400 shares of $20 par common stock as treasury stock at $39 per share. paid dividends of $2.00 per share. there were 33,000 shares issued and 5,000 shares of treasury stock.

Explanation:

The effects of (cash receipt or payment and amount) is shown below:

Retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. - cash payment of $198,000

Sold 7,000 shares of $30 par common stock for $69 per share - cash receipts for $483,000     (7,000 shares × $69)

Sold equipment with a book value of $45,100 for $64,900 - cash receipts for $64,900

Purchased land for $417,000 cash - cash payment for $417,000

Purchased a building by paying $85,000 cash and issuing a $100,000 mortgage note payable - cash payment for $85,000

Sold a new issue of $320,000 of bonds at 99 - cash receipts for $316,800 ($320,000 × 0.99)

Purchased 5,400 shares of $20 par common stock as treasury stock at $39 per share - $210,600 (5,400 shares × $39)

Paid dividends of $2.00 per share. There were 33,000 shares issued and 5,000 shares of treasury stock - cash payment for $52,000

(33,000 shares - 5,000 shares) × $2

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