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:

Collective Bargaining

The process by which employers and a group of employees negotiate labor contracts concerning wages, hours, benefits, and other working conditions.

Vicarious Liability

The liability at law of one person for the acts of another.

Negligent Misrepresentation

Negligent misstatements made by a professional to a client.

Negligent Misrepresentation

The unintentional provision of false information due to failure in exercising reasonable care or competence in communication.