• Porter Corporation reported the following transactions for 2011:
1. Sold equipment for $7,000. The original cost was $15,000; the book value is $6,000
2. Issued 2,000 shares of $5 par value common stock for $12 per share
3. Paid $3,000 for an Insurance policy which goes into effect in January 2012
4. Recognized $2,000 in Interest expense on Dec 31, 2011 - to be paid on April 30, 2012
5. Received $8,000 as collections from customers for 2010 sales, and $18,000 for 2011 sales
6. Reacquired 300 shares of its own common stock at $20 per share
7. Received $2,000 in dividends on stock held as available for sale
8. Recorded depreciation expense for $5,000
9. Paid $1,000 of dividends to common stockholders
10. Purchased equipment costing $65,000, by making a cash down payment of $20,000 and signing a note for the remaining $45,000.
11. Acquired a building with a market value of $250,000 by issuing 20,000 shares of common stock.
12. Paid salaries of $18,000
13. Cash received from sale of available for sale securities $6,000
14. Repaid a loan, which included $5,000 of the principal and $1,000 in interest
Porter Corporation uses the direct method for preparing the 2011 Statement of Cash Flows.