Activity Cash Cash Transaction Operating Investing Financing Inflow Outflow a. b. Etc.
Classification of Transactions
Below are several transactions that took place in Seneca Company last year:
a. Paid suppliers for inventory purchases.
b. Bought equipment for cash.
c. Paid cash to repurchase its own stock.
d. Collected cash from customers.
e. Paid wages to employees.
f. Equipment was sold for cash.
g. Common stock was sold for cash to investors.
h. Cash dividends were declared and paid.
i. A long-term loan was made to a supplier.
j. Income taxes were paid to the government.
k. Interest was paid to a lender.
l. Bonds were retired by paying the principal amount due.
Required:
Prepare an answer sheet with the following headings:
Enter the transactions above on your answer sheet and indicate how each of them would be classified on a statement of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
