Problem 12 9a wileyplus

Description / Instructions: Complete the following Week 5 Assignment in WileyPLUS: * Exercise 7-3 * Exercise 12-1 * Exercise 12-8 * Problem 12-9A * Problem 12-10A * Exercise 13-3 * Exercise 13-4 * IFRS 13-1 * Problem 13-2A

Exercise 12-1

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Question 1

Putnam Corporation had these transactions during 2014.

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. [removed]

(b) Issued $50,000 par value common stock for cash. [removed]

(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. [removed]

(d) Declared and paid a cash dividend of $13,000. [removed]

(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. [removed]

(f) Collected $16,000 of accounts receivable. [removed]

(g) Paid $18,000 on accounts payable. [removed]
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Exercise 12-8

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Question 2

Shown below are comparative balance sheets for Schmitt Company.

SCHMITT COMPANY
Comparative Balance Sheets
December 31
Assets

2014

2013

Cash
$ 68,000

$ 22,000

Accounts receivable
88,000

76,000

Inventory
167,000

189,000

Land
80,000

100,000

Equipment
260,000

200,000

Accumulated depreciation—equipment
(66,000
)

(32,000
)
Total
$597,000

$555,000

Liabilities and Stockholders’ Equity

Accounts payable
$ 39,000

$ 43,000

Bonds payable
150,000

200,000

Common stock ($1 par)
216,000

174,000

Retained earnings
192,000

138,000

Total
$597,000

$555,000

Additional information:

1. Net income for 2014 was $93,000.
2. Depreciation expense was $34,000.
3. Cash dividends of $39,000 were declared and paid.
4. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
5. Common stock was issued for $42,000 cash.
6. No equipment was sold during 2014.
7. Land was sold for its book value.
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