Riverside Company issued long-term debt of 350 paid dividends of 20 and issued capital stock of 100. Cash flow from financing activities was:a. 410 b. 420 c. 430 d. 440

430

Explanation:

Riverside company issued a long term debt of 350

They paid dividend of 20

They also issued a capital stock of 100

Therefore the cash flow from financing activities can be calculated as follows

=long term debt - dividend + issued capital stock

= 350-20+100

= 330+100

= 430

Hence the cash flow from financing activities was 430

Sahia Company

1. Net book value of the property at the end of year 2 = $217,800.

2. Journal entry to record the purchase:

Debit Property (land and building) $241,000

Credit Cash Account $241,000

To record the acquisition of the property.

3. Straight-line depreciation (on building only) = $11,600.

Explanation:

a) Data and Calculations:

Bought building for cash = $90,000

Bought land for cash =         110,000

Transfer cost =                       10,000

Renovation on building =      31,000

Book value of property =  $241,000

Depreciation:

Building cost = $90,000

Transfer cost        4,500 ($10,000*90,000/200,000)

Renovation         31,000

Total cost =    $125,500

Residual value     9,000

Depreciable value = $116,000

Depreciation per annum = $11,600 ($116,000/10)

a) Land is not subject to depreciation and its value is $115,500 or $110,000 + 5,500 ($10,000*110,000/200,000).

b) The net book value of the property at the end of year 2 is

Building $125,500 - 23,200 = $102,300

Land =                                          115,500

Net book value of property =  $217,800