If your answer is not reported in an amount box does not require an entry, leave it blank or enter “0”.
| a. | Received $120,000 from the sale of land costing $70,000. | $ | |
| $ | |||
| b. | Purchased investments for $75,000. | $ | |
| c. | Declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year. | $ | |
| d. | Acquired equipment for $64,000 cash. | $ | |
| e. | Declared and issued 100 shares of $20 par common stock as a stock dividend, when the market price of the stock was $32 a share. | $ | |
| f. | Recognized depreciation for the year, $37,000. | $ | |
| g. | Issued 85,000 shares of $10 par common stock for $25 a share, receiving cash. | $ | |
| h. | Issued $500,000 of 20-year, 10% bonds payable at 99. | $ | |
| i. | Borrowed $43,000 from Regional Bank, issuing a 5-year, 8% note for that amount. | $ |
Que-22
| Entry | Debite $ | Credit $ | ||
| a. | Received $120,000 from the sale of land costing $70,000. | Cash | 120,000 | |
| Activity Reported in cash Flow | Land | 70,000 | ||
| Investing Activity 120,000 | Gain on sale of land | 50,000 | ||
| b. | Purchased investments for $75,000. | Investment | 75000 | |
| Activity Reported in cash Flow | Cash | 75000 | ||
| Investing Activity 75,000 | ||||
| c. | Declared $35,000 cash dividends on stock. $5,000 dividends were payable at the beginning of the year, and $6,000 were payable at the end of the year. | Dividend paid | 34000 | |
| Activity Reported in cash Flow | Cash | 34000 | ||
| Financing Activity 34,000 | ||||
| d. | Acquired equipment for $64,000 cash. | Equipment | 64000 | |
| Activity Reported in cash Flow | Cash | 64000 | ||
| Investing Activity 64,000 | ||||
| e. | Declared and issued 100 shares of $20 par common stock as a stock dividend, when the market price of the stock was $32 a share. | Not Reported | ||
| Activity Reported in cash Flow | ||||
| Not Reported | ||||
| f. | Recognized depreciation for the year, $37,000. | Depreciation Exp | 37000 | |
| Activity Reported in cash Flow | Assets | 37000 | ||
| Operating Activity 37000 | ||||
| g. | Issued 85,000 shares of $10 par common stock for $25 a share, receiving cash. | Cash | 2125000 | |
| Activity Reported in cash Flow | Shares | 2125000 | ||
| Financing Activity 21,25,000 | ||||
| h. | Issued $500,000 of 20-year, 10% bonds payable at 99. | Cash | 495,000 | |
| Activity Reported in cash Flow | Discounts | 5000 | ||
| Financing Activity 500,000 | Bonds Payable | 495,000 | ||
| I. | Borrowed $43,000 from Regional Bank, issuing a 5-year, 8% note for that amount. | Cash | 43000 | |
| Activity Reported in cash Flow | Notes Payable | 43000 | ||
| Financing Activity 43,000 |
