Plano Corporation presented the following account balances for 2010 and 2009:

Additional information:
1.Cash dividends of $20,000 were declared on December 15,2010,payable on January 15,2011.
2.The company issued 70,000 shares of $1 par value common stock during 2010.
3.The company repurchased 34,000 shares of its own common stock during the period.No treasury stock was sold during the period.
4.Additional equipment was purchased by issuing a $100,000 long-term note payable.
Required:
1.Prepare the financing section of Plano's 2010 statement of cash flows.
2.Indicate if any of the events will be reported as a significant noncash transaction.

Question

Plano Corporation presented the following account balances for 2010 and 2009:
  
Additional information:
1.Cash dividends of $20,000 were declared on December 15,2010,payable on January 15,2011.
2.The company issued 70,000 shares of $1 par value common stock during 2010.
3.The company repurchased 34,000 shares of its own common stock during the period.No treasury stock was sold during the period.
4.Additional equipment was purchased by issuing a $100,000 long-term note payable.
Required:
1.Prepare the financing section of Plano's 2010 statement of cash flows.
2.Indicate if any of the events will be reported as a significant noncash transaction.

Quizplus · Accepted Answer

The Answer of Plano Corporation presented the following account balances for 2010 and 2009:
  
Additional information:
1.Cash dividends of $20,000 were declared on December 15,2010,payable on January 15,2011.
2.The company issued 70,000 shares of $1 par value common stock during 2010.
3.The company repurchased 34,000 shares of its own common stock during the period.No treasury stock was sold during the period.
4.Additional equipment was purchased by issuing a $100,000 long-term note payable.
Required:
1.Prepare the financing section of Plano's 2010 statement of cash flows.
2.Indicate if any of the events will be reported as a significant noncash transaction.

Plano Corporation Presented the Following Account Balances for 2010 and 2009