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hdicate wilat type of aCLivIty the trarisaction represets O Operating F = Financ

ID: 2598831 • Letter: H

Question

hdicate wilat type of aCLivIty the trarisaction represets O Operating F = Financing I - Investing N Noncash transaction Sold Building for cash at cost [Choose ] Borrowed $10,000 from the bank IChoose l Purchase Equipment for cash IChoose l Received dividend income IChoose l Sold $200,000 worth of products for cash [Choose] Paid $500 for supplies IChoose l Sold Common Stock to stockholders IChoose l Purchased a Building by signing a 30 year[I Choosc mortgage Paid off long-term debt with cash [Choose ] Paid the monthly telephone bill IChoose l Paid cash dividends to stockholders IChoose l Issed $50,000 of Common Stock in exchange for land [Choose ]

Explanation / Answer

Operating activities - Cash flows related to the Income Statement items, Current assets and Current liabilities excluding Notes payable and short term debt.

Investing activities - Cash flows related to non current assets.

Financing activities - Cash flows related to Debt(current debt and non current debt), equity.

Non cash transaction - Involvs no cash.

Sold Building for cash at cost - Investing

Borrowed $10,000 from the bank - Financing

Purchase Equipment for cash - Investing

Received dividend income - Operating

Sold $200,000 worth of products for cash - Operating

Paid $500 for supplies - Operating

Sold Common Stock to Stockholders - Financing

Purchased a Building by signing a 30 year mortgage - Non cash transaction

Paid off long term debt with cash - Financing

Paid the monthly telephone bill - Operating

Paid cash dividends to stockholders - Financing

Issued $50,000 of Common stock in excahnge for land - Non cash transaction.