Effect of transactions on cash flows state the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash flows: retired $190,000 of bonds, on which there was $1,900 of unamortized discount, for $198,000. sold 7,000 shares of $30 par common stock for $69 per share. sold equipment with a book value of $45,100 for $64,900. purchased land for $417,000 cash. purchased a building by paying $85,000 cash and issuing a $100,000 mortgage note payable. sold a new issue of $320,000 of bonds at 99. purchased 5,400 shares of $20 par common stock as treasury stock at $39 per share. paid dividends of $2.00 per share. there were 33,000 shares issued and 5,000 shares of treasury stock.

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6