(2) If company issued $2,000, 000 10-year bond for cash at 98, how would it be...
(2) If company issued $2,000, 000 10-year bond for cash at 98, how would it be reported
on cash flow statement?
(3) If company issued $1,000,000 bonds in exchange for $1,000,000 machine, how would it be reported on cash flow statement? (refer to book, major non-cash transactions)
Homework Answers
Answer:
2) $2,000,000*98% = $1,960,000 is recorded as a source in Financing activities because there is an increase of cash flow
3) Bonds issued with exchange of machine is Non cash Activity so it is not come in cash flow statement
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(2) If company issued $2,000, 000 10-year bond for cash at 98,
how would it be...
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