8. Place an X in the appropriate columns for each of the following situations. o

Question

8. Place an X in the appropriate columns for each of the following situations. on Cash Flows Classification Effect on cash Operating Investing Financing Cash Trans- Transaction Activity Activity Activity + action - Paying off accounts payable Issuance of bonds for cash Sale of land for cash a. b. c. d. Collected $1,000 accounts receivable e Paid $10,000 cash dividend f. Acquired land for common stock g. Purchased building for cash h. Sales of inventory on account i. Net Income Issue common stock to retire bonds

Explanation / Answer

Answer:-

S.no. Transaction Opreating Activity Investing Activity Financing Acivity Effect on Cash Non cash Transaction + - 1 Paying off Accounts payable X X 2 Issue of bonds for cash X X 3 Sale of land for cash X X 4 Collected $1000 accounts receivable X X 5 Paid $10000 cash dividend X X 6 Acquired land for common stock X 7 Purchased building for cash X X 8 Sales of inventory on account X X 9 Net Income X 10 Issue common stock to retire bonds X

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