Kiley Corp had these transactions during 2022. a) Purchased a machine for $30,000, giving a...

90.2K

Verified Solution

Question

Accounting

image
Kiley Corp had these transactions during 2022. a) Purchased a machine for $30,000, giving a long-term note in exchange. Did cash go in or out? If no - then "non-cash..." "Well Bob, maybe they put a down-payment" ... NO. Do not invent a scenario. Use the data presented as is! b) Issued $50,000 par value common stock for cash. Some folks see this as investment because "you are buying stock". NO. Look at this from the corps perspective. Corp issues stock to "raise money" to "finance" growth etc. c) Issued $200,000 par value common stock upon conversion of bonds that have a face value of $200,000. Corp is "swapping" investors bonds and giving them stock instead - an "even" exchange. d) Declared and paid a cash dividend of $13,000. From the Corps perspective it is giving a "return" to its' owners. Corp could do the same by giving owners more stock (stock div or stock split). From the individual owners pointof-view this is a "retum on their personal investment". BUT, again from the Corps perspective this has nothing to do with any investment. e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. These next three should be easier - no "assist" needed ... I hope? f) Collected $16,000 from sale of goods. g) Paid $18,000 to suppliers. Instructions Analyze the transactions and indicate whether each is an "O" operating activity; "I" investing activity; "F" financing activity, or "NC" noncash investing and financing activity

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students