Week 5 Assignment Wiley

E13-1
Pioneer Corporation had these transactions during 2011.
(a) Issued $50,000 par value common stock for cash.
(b) Purchased a machine for $30,000, giving a long-term note in exchange.
(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of
$200,000.
(d) Declared and paid a cash dividend of $18,000.
(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.
(f) Collected $16,000 of accounts receivable.
(g) Paid $18,000 on accounts payable.
Instructions
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)Issued $50,000 par value common stock for cash.
Cash inflow; financing activities

(b) Purchased a machine for $30,000, giving a long-term note in exchange. noncash investing and financing activities

(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. noncash financing activities (converting one form of financing to another)

(d) Declared and paid a cash dividend of $18,000.
Cash outflow; financing activities

(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.
Cash inflow; investing activities

(f) Collected $16,000 of accounts receivable.
Cash inflow; operating activities

(g) Paid $18,000 on accounts payable.
Cash outflow; operating activities

E13-8

Here are comparative balance sheets for Taguchi Company.

TAGUCHI COMPANY
Comparative Balance Sheets
December 31
Assets 2011 2010
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000
Liabilities and Stockholders’ Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained