Classify each transaction as either a(n)operating activity, investing activity, financing activity, or non-cash investing and financing...

	Classify each transaction as either a(n)operating activity,
	investing activity, financing activity, or non-cash investing and financing activity
	by placing a X in the correct column.

	Operating	Investing	Financing	Non-cash invest/fin
a.					a.	Decrease in prepaid expense.
b.					b.	Increase in accounts payable.
c.					c.	Purchase of treasury stock.
d.					d.	Building is sold for cash at book value.
e.					e.	Bonds payable are converted into common stock.
f.					f.	Equipment is purchased for cash.
g.					g.	Issued preferred stock above par value.
h.					h.	Receipt of dividends on investment in stock.
i.					i.	Bonds payable are issued for cash at a discount.
j.					j.	Decrease in accounts receivable.
k.					k.	Cash dividends are paid.
l.					l..	Increase in inventory.

Expert Solution

note : dividends received is also showed some times in operating activities take accordingly your need

EXPLANATION

OPERATING ACTIVITIES: change in current assets and current liabilities are the operating activities

financing activities: issuance of stock and retirement of debt dividends paid are the financing activities

investing activities: purchase and sale of plant and Machinery , buildings are the investing activities

noncash inve/fin : issuance of stock to retire debt, purchase of asset by issuing stock bonds. exchange of non cash assets etc

ekkarill92 answered 9 months ago

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