Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 5 - Balance Sheet and Statement of Cash Flows - Questions - Page 280: 25b

Answer

The issuance of the preferred stock is a financing activity and is, therefore, reported under cash flows from financing activities with the value of 1, 150, 000.

Work Step by Step

The issuance will be reported as: Cash flows from financing activities Issuance of preferred stock (10,000 x 115) $1,150,000
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