Use the Following Company Information to Prepare a Schedule of Significant

question 69

Essay

Use the following company information to prepare a schedule of significant noncash investing and financing activities:
(a) Sold a building with a book value of $300,000 for $225,000 cash and sold land with a book value of $40,000 for $65,000 cash.
(b) Issued 15,000 shares of $10 par value common stock in exchange for equipment with a market value of $175,000.
(c) Retired a $100,000, 8% bond by issuing another $100,000, 7% bond issue.
(d) Acquired land by issuing a twenty-year, 5%, $73,000 note payable.

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Definitions:

Mutually Exclusive

Events that cannot occur at the same time, indicating a scenario where the happening of one event precludes the occurrence of the other.

Simple Random Sample

A sampling method where each member of a population has an equal chance of being selected, ensuring the sample's representativeness of the population.

Equal Chance

The concept that every outcome of a particular experiment or event has the same probability of occurring.

Target Population

The entire group about which a researcher intends to generalize the findings from a study.