dbulluck
Jun 5, 2010, 07:20 PM
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You are provided with the following transactions that took place during a recent
Fiscal year.
Transaction Where Reported Cash Inflow, Outflow,
On Statement ? Or No Effect?
(a) Purchased shares of common
Treasury stock.
(b) Distributed a stock dividend to common
Stockholders.
(c) Recorded cash sales.
(d) Recorded sales on account.
(e) Recorded prepayment of insurance expense.
(f ) Purchased supplies on account.
(g) Recorded amortization expense on
A patent.
(h) Recorded and received interest revenue.
(I) Recorded cash proceeds from a sale of
Plant assets.
(j) Acquired land by issuing a note
Payable.
Instructions
Complete the table indicating whether each item (1) should be reported as an operating
(O) activity, investing (I) activity, financing (F) activity, or as a noncash (NC) transaction
Reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has
No cash flow effect. Assume use of the indirect approach.
You are provided with the following transactions that took place during a recent
Fiscal year.
Transaction Where Reported Cash Inflow, Outflow,
On Statement ? Or No Effect?
(a) Purchased shares of common
Treasury stock.
(b) Distributed a stock dividend to common
Stockholders.
(c) Recorded cash sales.
(d) Recorded sales on account.
(e) Recorded prepayment of insurance expense.
(f ) Purchased supplies on account.
(g) Recorded amortization expense on
A patent.
(h) Recorded and received interest revenue.
(I) Recorded cash proceeds from a sale of
Plant assets.
(j) Acquired land by issuing a note
Payable.
Instructions
Complete the table indicating whether each item (1) should be reported as an operating
(O) activity, investing (I) activity, financing (F) activity, or as a noncash (NC) transaction
Reported in a separate schedule, and (2) represents a cash inflow or cash outflow or has
No cash flow effect. Assume use of the indirect approach.