Question

Listed below are transactions that might be reported as investing and/or financing activities on a statement of cash flows. Possible reporting classifications of those transactions are provided also. 

 

Required: 

Indicate the reporting classification of each transaction by entering the appropriate classification code.

Answer 1

Classification	S.No.	Transactions
+I	1	Sale of land
+F	2	Issuance of common stock for cash
-F	3	Purchase of treasury stock
N	4	Conversion of bonds payable to common stock
N	5	Lease of equipment
+I	6	Sale of Patent
-I	7	Acquisition of building for cash
N	8	Issuance of common stock for land
+I	9	Collection of note receivable (Principal)
+F	10	Issuance of bonds
X	11	Issuance of stock dividend
N	12	Payment of property dividend
-F	13	Payment of cash dividends
+F	14	Issuance of short-term note payable for cash
+F	15	Issuance of long-term note payable for cash
-I	16	Purchase of marketable securities ("available for sale")
-F	17	Payment of note payable
X	18	Cash payment for five-year insurance policy
+I	19	Sale of equipment
N	20	Issuance of note payable for equipment
-I	21	Acquisition of common stock of another corporation
N	22	Repayment of long-term debt by issuing common stock
X	23	Payment of semiannual interests on bonds payable
-F	24	Retirement of preferred stock
-I	25	Loan to another firm
X	26	Sale of Inventory to customers
X	27	Purchase of marketable securities (cash equivalents)

Classification	S.No.	Transactions
+I	1	Sale of land
+F	2	Issuance of common stock for cash