E12-2 Analyze the transactions and indicate whether each transaction is an operating, investing, financing, or non-cash...

E12-2 Analyze the transactions and indicate whether each transaction is an operating, investing, financing, or non-cash activity. Indicate whether it the item would be added or subtracted in the respective section in the statement of cash flows.

Activity Description: Classify Activity as Operating, Investing, Is the activity Added (inflow), subtracted (outflow),

Financing, or Non-Cash or non-cash?

(a) Payment of interest on notes payable.

(b) Exchange of land for patent.

(d) Payment of dividends.

(e) Depreciation.

(f) Conversion of bonds into common stock.

(g) Receipt of interest on notes receivable.

(h) Issuance of capital stock.

(i) Amortization of patent.

(j) Issuance of bonds for land.

(k) Purchase of land.

(l) Receipt of dividends on investment in stock.

(m) Loss on disposal of plant assets.

(n) Retirement of bonds.

Solutions

Expert Solution

Particular	Added (inflow) subtracted (outflow),	Operating, Investing, Financing, or non-cash activity.
a) Payment of interest on notes payable	Substrcted (-)	Operating
b) Exchange of land for patent.	-	Non Cash ( Investing and financing activity)
c) Sale of building at book value	Added (+)	Investing
d) Payment of dividends	Substracted (-)	Financing
(e) Depreciation.	Added ( +)	Operating
f) Conversion of bonds into common stock	-	Non Cash ( Investing and financing activity)
g) Receipt of interest on notes receivable.	Added ( +)	Operating
h) Issuance of capital stock.	Added ( +)	Financing
i) Amortization of patent.	Added ( +)	Operating
j) Issuance of bonds for land.	-	Non Cash ( Investing and financing activity)
K) Purchase of land.	Substracted	Investing
I) Receipt of dividends on investment in stock	Added (+)	Operating
m) Loss on disposal of plant assets.	Added (+)	Operating
n) Retirement of bonds	Substrcted ( -)	Financing

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.

Classify transactions by type of activity. E17.1 (LO 1), C Kiley Corporation had these transactions during 2022. a. Purchased a machine for $30,000, giving a long-term note in exchange. b. Issued $50,000 par value common stock for cash. c. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. d. Declared and paid a cash dividend of $13,000. e. Sold a long-term investment with a cost of $15,000 for $15,000 cash. f. Collected $16,000...

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...

Of which are these are operating, investing, financing, and non-cash activities? Purchase of furniture for cash,...

Of which are these are operating, investing, financing, and non-cash activities? Purchase of furniture for cash, deprecation expense, new long-term loan for operations, proceeds from sale of land, change in accounts payable, gain on sale of building, issuance of long-term notes payable, and conversion of bonds payable to common stock.

Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare...

Classify each cash transaction between Operating (O), Investing (I), or Financing (F) activities; and prepare the Statement of Cash Flow for Cougar Corp. using the following data: Cash at the beginning of the year: $600,000 Cash Receipts from: __Bank (Interest on CD) $3,000 __Customers Sales $875,000 __Interest $30,000 __Dividends $3,500 Cash payments for: __Dividends $2,000 __Raw Materials $ 3,000 __Wages Expense $4,000 __Land $10,000 __Interest $4,000

Listed below are several transactions. For each transaction, indicate by letter whether the cash effect ofeach...

Listed below are several transactions. For each transaction, indicate by letter whether the cash effect ofeach transaction is reported in a statement of cash flows as an operating (O), investing (I), financing (F), ornoncash (NC) activity. Also, indicate whether the transaction is a cash inflow (+), cash outflow (-), orhas no effect on cash (N). The first answer is provided as an example. 1. Purhcased equipment with cash 2. Re-sold treasury stock 3. Paid the State of California franchise taxes...

Q5 For each of the following transactions, indicate whether net cash flows from operating activities (O),...

Q5 For each of the following transactions, indicate whether net cash flows from operating activities (O), investing activities (I), or financing activities (F) are affected and whether the effect is an inflow (+) or outflow (-), or write NE if the transaction has no effect on cash. (Hint: determine the journal entry recorded for the transaction. The transaction affects net cash flows if, and only if, the cash account is affected.) ______1. Paid a building rent for the following period....

The following are operating transactions that occur during the current year. Analyze each transaction and explain...

The following are operating transactions that occur during the current year. Analyze each transaction and explain if the transaction will increase, decrease, or have no effect on the working capital. Please explain each answer fully a. Company purchased inventory on account, $5800; terms 2/10,n/30 b. Company borrowed $55,000 in a long term note. c. Old equipment with a book value of $2200 is sold for $1325 d. marketable securities are sold at a gain of $4800 e. Company paid $4200...

Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should...

Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.) Sold a truck costing $49,000, with $25,600 of accumulated depreciation, for $11,600 cash. The sale results in a $11,800 loss. Sold a machine costing $14,200, with $9,800 of accumulated depreciation, for $8,600 cash. The sale results in a $4,200 gain. Purchased stock investments for $17,800 cash. The purchaser believes the stock is worth at least $33,600

BE3.1 (LO 1) Presented below are a number of transactions. (a) Indicate whether each transaction increased...

BE3.1 (LO 1) Presented below are a number of transactions. (a) Indicate whether each transaction increased (+), decreased (–), or had no effect (NE) on assets, liabilities, and shareholders’ equity. (b) Which of the following are accounting transactions that should be recorded in the accounting records? (1)Purchased equipment for cash. Completed the paperwork to hire a new employee; (2) the employee will start work next week. Fired the CEO. (3)Performed services on account. (4)A potential customer called to inquire about...

Explain whether the expected net cash flows from the three activities (operating, investing, financing) would be...

Explain whether the expected net cash flows from the three activities (operating, investing, financing) would be in flows or outflows.

Subjects