E12.3 (LO 1), AP Cushenberry Corporation had the following transactions. Prepare journal entry and determine effect on cash flows. 1. Sold land (cost $12,000) for $15,000. 2. Issued common stock at par for $20,000. 3. Recorded depreciation on buildings for $17,000. 4. Paid salaries of $9,000. 5. Issued 1,000 shares of $1 par value common stock for equipment worth $8,000. 6. Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200.

Transaction 1

Cash $15,000 (debit)

Profit and Loss $ 3,000 (credit)

Land $12,000 (credit)

Cash Flow Effect : Increase $15,000

Transaction 2

Cash $20,000 (debit)

Common Stock $20,000 (credit)

Cash Flow Effect : Increase $20,000

Transaction 3

Depreciation Expense $17,000 (debit)

Accumulated Depreciation Expense $17,000 (credit)

Cash Flow Effect : No Change

Transaction 4

Salaries Expenses $9,000 (debit)

Cash $9,000 (credit)

Cash Flow Effect : Decrease  $9,000

Transaction 5

Equipment $8,000 (debit)

Common Stock $1,000 (credit)

Paid In Excess of Par $7,000 (credit)

Cash Flow Effect : No Change

Transaction 6

Cash $1,200 (debit)

Accumulated Depreciation $7,000 (debit)

Profit and Loss $1,800 (debit)

Equipment at Cost $10,000 (credit)

Cash Flow Effect : Increase   $1,200

Explanation:

All Cash transactions will have an effect on cash flow. Non Cash transactions will not have an effect and these include exchanges of assets and other financial instruments.

was my answer wrong?

answer; proclamation of 1763;