[AceGuru]

Questions:
1. mortgage note for 80,000 was issued for cash
2. a building was constructed for 207,000
3. 5,000 shares of common stock were issued at $28 in exchange for the bonds payable
(Bonds pay - 140,000)


My Answers:

Financing Activities:
Cash received from stock issuance 140,000
Decrease in bonds-pay (140,000)
Increase in mortgage note 80,000

Investing Activities:
Cash paid for building construction (207,000)

[DFK]

I'm not exactly sure what the questions are but you seem to be on the right track.
The Journal Entries for the transactions would be:
1.) Debit Cash $80000 & Credit Mortgage Note 80000
2.) Debit Fixed Assets 207000 & Credit Accounts Payable (cash is not specified)
3.) Debit Cash $140000 & Credit Bonds Payable $140000

Hope that helps

[neno2000]

Yes DFK is correct , so cash form investment has been increased with $ 220000