Harris Co. began operations on January 1, 2017 During 2017, the company engaged

ID: 2340898 • Letter: H

Question

Harris Co. began operations on January 1, 2017 During 2017, the company engaged in the following cash transactions:

1- Issued stock for 20,000

2- borrowed 25000 from its bank

3- sold services for 30000

4- paid back 12000 of the bank loan

5- paid rent expense for 3000

6- purchased land costing 10000

7- paid 2000 for Dividends to Stockholders

8- paid employees salaries 10000

Which cash transactions are considered cash flow from operating activities?

A- 1,2 and 7

B- 1,2,4 and 7

C- 3,5 and 8

D- 3,5,6 and 8

Review the following event for Nevada Co. in the horizantal statments model below:

cahs Land notes payable common stock Retaned Earnings

400 400

which of the following best descrbes :

1- Nevada Co. paid 400 to purchse land

2- Navada Co. obtaind 400 by purchasing stock

3- Navada Co. paid 400 to its creditors (bank)

4- Navada Co. obtained 400 by issuing stock

Q3- which of the following is true

1- Expense incearse owner's equity

2- Revenue decrease ownr's equity

3- Both 1-2

4- Non

Q.1 (C) 3,5,8

because these are the only transactions that are consider when calculating operating cash flow from Direct expenses.

Q.2 (4) Obtained 400by issuing stock.

Because 400are given in positive number. And for satisfying accounting equation Assets= liab+cap. So best thing is cash received from Common stock

Q.3 (4) None

because expesnse decrease operating income and ultimately decrease equity and same for revenue. Rebvenue increase the equity.

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