Classify each transaction as either: operating activity (O), investing activity (I), financing activity (F), or noncash investing and financing activity (NC). Also, indicate whether the transaction generated a cash inflow, cash outflow, or no cash flow effect. Transaction Activity affected O, I, F, NC Cash inflow, outflow, or no cash flow effect1 Bonds payable are issued for cash at a discount. 2 Land is sold for cash at book value. 3 Bonds payable is converted into common stock. 4 Paid a cash dividend to preferred stockholders. 5 Land was acquired by issuing common stock. 6 Recorded sales on account. 7 Merchandise is sold to customers for cash. 8 Equipment is purchased by signing a 3-year, 10% note payable. 9 Sold buildings and equipment for cash. 10 Purchased inventory for cash. 11 Common stock is sold for cash above par value. 12 Cash proceeds from disposal of plant asset.

Question

Business

Kylie Jimenez

5 January, 20:55

Classify each transaction as either: operating activity (O), investing activity (I), financing activity (F), or noncash investing and financing activity (NC). Also, indicate whether the transaction generated a cash inflow, cash outflow, or no cash flow effect. Transaction Activity affected O, I, F, NC Cash inflow, outflow, or no cash flow effect1 Bonds payable are issued for cash at a discount. 2 Land is sold for cash at book value. 3 Bonds payable is converted into common stock. 4 Paid a cash dividend to preferred stockholders. 5 Land was acquired by issuing common stock. 6 Recorded sales on account. 7 Merchandise is sold to customers for cash. 8 Equipment is purchased by signing a 3-year, 10% note payable. 9 Sold buildings and equipment for cash. 10 Purchased inventory for cash. 11 Common stock is sold for cash above par value. 12 Cash proceeds from disposal of plant asset.

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Marc · Answer 1

1a : F

1b: cash inflow

2a: O

2b: cash inflow

3a: F

3b: cash inflow

4a: F

4b: cash outflow

5a: I

5b:cash outflow

6a: NC

6b: no cashflow

7a: O

7b: cash inflow

8a:I

8b: no cashflow

9a: I

9b: cash inflow

10a: I

10b: cash outflow

11a: F

11b: cash outflow

12a: I

12b: cash inflow