Aug. 1 3 6 10 13 15 17 22 24 27 29 31 Paid $430 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. (Hint: Use the Prepaid Advertising account.) Paid August rent $400. (Hint: Use the Prepaid Rent account.) Received $2,970 cash from customers in payment of accounts. Paid $3,400 for salaries due employees, of which $1,850 is for August and $1,550 is for July salaries payable. Received $3,750 cash for services performed in August. Purchased additional equipment on account $2.140. Paid creditors $2,140 of accounts payable due. Purchased supplies on account $810. Paid salaries $3,040. Performed services worth $5,160 on account and billed customers. Received $830 from customers for services to be provided in the future. Declared and paid a $490 dividend.
Q: Which of the following scenarios illustrates entrepreneurship?
A: Entrepreneurship means starting a new business with a new idea that is not available in the market.…
Q: Required information [The following information applies to the questions displayed below.] Below are…
A: A separate book named Ledger will be opened and kept up to date with all the Accounts recognized…
Q: The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share…
A: Liquidation is the process whereby the firm gets liquidated or dissolved. This could be due to many…
Q: If Ana chose to be taxed at an 8 percent rate, how much is her overall income tax? (based on the…
A: SOLUTION- COMPUTATION OF TAX DUE - GROSS SALES 2800000 LESS- TAX EXEMPT INCOME (250000)…
Q: 3. On December 30, Nancy Sheridan hired an employee, Tom Shanahan, to help her with the medical…
A: In the context of the given question, we are required to compute the net wages payable and prepare…
Q: Complete the statement: Preference share that has a claim on any prior year dividends that may have…
A: Lets understand the basics. On based of comulation of dividend, preference shares are divided into…
Q: Mr B aged 63 years, has earned rupees 75,00,000 out of his business . His ex- wife gifted him cash…
A: The tax slab rate for the tax payable of 60 years or above is mentioned below: Tax Slab Rates…
Q: Equipment was acquired at the beginning of the year at a cost of $76,380. The equipment was…
A: Business organizations are required to charge the depreciation expense in the accounting books so as…
Q: Is there a difference between relevant costs and incremental costs? Explain
A: Relevant cost: Relevant cost is the cost which is relevant in decision making of a project, and…
Q: An audit of business's financial reports, preformed by a third party to validate that it is an…
A: External audit reports that whether the Financial statements of an organisation shows true and fair…
Q: ForCo, a corporation that is incorporated in a foreign country that does not have a treaty with the…
A: Please Fallow the Below Answers to the above questions: 1. The correct statement is : A) $ 1.5…
Q: Mandy Company has the following information from last month: Standard direct labor hours for…
A: Direct labour cost is cost of labour which is directly engaged in production or manufacturing.…
Q: What amount should Genius report as adjusted beginning Accumulated Profits and Losses on January 1,…
A: 1. Accumulated profit as on December 31, 2014 is already after tax. 2.…
Q: Question:- based on this figure: • Analyze the relationship between share price and D/E ratio •…
A: Answer:- Analysis of the relationship between share price and D/E ratio:- Stock prices are…
Q: Refer to the following data: Direct material used…
A: Cost accounting is one of the important branch of accounting. Several type of costs are being…
Q: What would your explanation be for this journal entry? Common Stock $200,000 Retained Earnings…
A: Introduction: Journal entry is the act of recording transactions in an accounting journal. An…
Q: Len Kumar started his own consulting firm, Kumar Consulting, on June 1, 2017. The trial balance at…
A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. It is…
Q: What kind of option can be used to incentive CEOs? Discuss the difference between stock option…
A: CEO play and major role in achieving the goal of company and help the company and achieve its…
Q: If there were two debit entries of R650 each in a journal entry, and one credit entry of R500, what…
A: As per double entry bookkeeping system, every transaction while recording in books of accounts will…
Q: Twisted Pretzel, Inc. had beginning Work-in-Process Inventory (WIP) of $10,000 and makes only one…
A: Cost of goods manufactured in case of work in process = Opening work in process + Conversion costs -…
Q: The following transactions occured during 2014 for Northstar Corp which uses a perpetual inventory…
A: Cost of goods sold can be calculated by two methods the first is the direct method under which the…
Q: Boris' Car Loft, Inc., began operations on January 1. It manufactures 10,000 automobiles and sold…
A: Product Costs: Product cost means the costs incurred directly or indirectly related to the…
Q: Question: A company purchased equipment valued at $238,000. It traded in old equipment for a…
A: When fixed assets are being purchased for the business, it can be for cash or by exchanging some old…
Q: PROBLEM 5-3. RECONCILIATION OF HO AND BRANCH ACCOUNTS The following were found in your examination…
A: In the context of the given question, we are required to show the statement of reconciliation for…
Q: Hanson, James, and Smith, a partnership, is in the process of liquidating. The partners have the…
A: Introduction: A partnership is a type of business in which two or more people enter into a legal…
Q: Hindenburger, Inc., began operations on January 1. It made 5,000 burgers and sold 4,000 of them.…
A: Total product cost includes a total direct cost. It includes direct material, direct wages, and…
Q: On December 1,2022, DG Computers Inc. purchased 10 personal computers from Japanese firm for…
A: Answer= Forex Gain of P 16,000
Q: Information for two alternative projects involving machinery investments follows. Project 1 requires…
A: Net Present Value: The calculation of the overall worth of a future stream of payments is…
Q: Business On October 1st, a borrowed $25,000 from a bank. The loan has a period of 120 days and an…
A: Interest expense is the monetary obligation of the borrower to pay regularly towards the sum…
Q: Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129.…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: You have a lawn mowing business. You plan to work 250 hours per month and charge your customers $24…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: ce Walton bought one full bitcoin in March 2020. His bases in the coin is $5838. In July 2021, he…
A: Donations are deductible up to certain limits for different limits for different tax payers and they…
Q: Calculate the weighted average unit contribution margin, assuming a constant sales mix.
A: Contribution margin or gross profit refers to the profit earns by the company for selling goods and…
Q: Zedus furnitures issued a 10 year P1,910,000 FV, 6% bonds at par. Each of the P1,000 bond…
A: Diluted earnings per share used to assess profitability of an company after taking in to…
Q: Braburt Co. issued $700,000 worth of six-year, five percent bonds on January 1st, 2021. Interest is…
A: A bond is a document of the bond issuer's obligation to the bondholders. Municipal bonds and bond…
Q: QUESTION 36 Pasta Disasta, Inc. is preparing its master budget for its first quarter of business. It…
A: Total cash payment for Inventory shall be calculated on the basis 70% of total payable shall be…
Q: The December 31, 2014, equity section of Zalicus Inc.'s balance sheet appears below. Zalicus Inc.…
A: Introduction: Cumulative preferred shareholders have the right to receive dividends on a regular…
Q: The chief executive officer earns $21,000 per month. As of May 31, her gross pay was $105,000. The…
A: Federal Insurance Contribution Act is a payroll tax that is deducted from the paycheck of the…
Q: o our authors, define “gross profit" and provide an example.
A: Gross Profit is the margin that a business wanted to earn on selling the goods or service, its…
Q: What is the total amount of liabilities in his business? a.R1 397 600 b.R1 122 300 c.R1 147…
A: Lets understand the basics. Liability is portion in financial statement which show how much amount…
Q: Edwards Center for GNP Accounting, a nonprofit organization, receives a letter from a donor that…
A: As per the Rules of Journal entry there are 3 golden rules. Debit what comes in Credit what goes…
Q: Microhard produces tablets, laptops and televisions. Microhard typically sells 1,000 tablets a year.…
A: Variable costs are those costs which changes with change in activity level. Contribution margin is…
Q: The Coca-Cola Company hardly needs an introduction. A line taken from the cover of a recent annual…
A: An annual report is prepared that public businesses are required to present to shareholders every…
Q: On September 30, the firm received its utilities bill for the month of September amo to P14,300.…
A: Income Statement The income statement is defined as the financial statement that explains the…
Q: 1. A company is evaluating two projects, A and B. The company's cost of capital has been determined…
A: The Net Present Value is calculated with the help of following formula Net Present Value = Present…
Q: Use the following information for questions 7 to 8: Sarah Company started construction of its…
A: Lets undestand the basics. As per IAS23 "Borrowing cost", borrowing cost incurred for construction…
Q: The ABC Company began operations in January 2018 and reported the following results for each of its…
A: Introduction: Preference share holders are those capital providers for the company who receives…
Q: Examples of benefits include all of the following, EXCEPT: a) retirement benefits. b) paid vacation.…
A: Benefit: Reward-driven behavior is the result of having an outwardly focused incentive. It may be…
Q: PROBLEM 5-4. RECONCILIATION OF HO AND BRANCH ACCOUNTS On December 31, 2019, the Home Office Equity…
A:
Q: not easily traceable and are allocated to a cost object u not abbreviate or add any extra spacing in…
A: Direct costs refer to those expenses which can be directly related to a product or a service.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In March, T. Carter established Carter Delivery Service. The account headings are presented below. Transactions completed during the month of March follow. a. Carter deposited 25,000 in a bank account in the name of the business. b. Bought a used truck from Degroot Motors for 15,140, paying 5,140 in cash and placing the remainder on account. c. Bought equipment on account from Flemming Company, 3,450. d. Paid the rent for the month, 1,000, Ck. No. 3001 (Rent Expense). e. Sold services for cash for the first half of the month, 6,927 (Service Income). f. Bought supplies for cash, 301, Ck. No. 3002. g. Bought insurance for the truck for the year, 1,200, Ck. No. 3003. h. Received and paid the bill for utilities, 349, Ck. No. 3004 (Utilities Expense). i. Received a bill for gas and oil for the truck, 218 (Gas and Oil Expense). j. Sold services on account, 3,603 (Service Income). k. Sold services for cash for the remainder of the month, 4,612 (Service Income). l. Paid wages to the employees, 3,958, Ck. Nos. 30053007 (Wages Expense). m. Carter withdrew cash for personal use, 1,250, Ck. No. 3008. Required 1. In the equation, write the owners name above the terms Capital and Drawing. 2. Record the transactions and the balance after each transaction. Identify the account affected when the transaction involves revenues or expenses. 3. Write the account totals from the left side of the equals sign and add them. Write the account totals from the right side of the equals sign and add them. If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $7,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $250 check #102. D. Received $350 cash for services rendered. E. Purchased office supplies for $125 with check #103. F. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days. G. Received $750 cash for services rendered. H. Paid wages $375, check #105. I. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106. J. Increased Petty Cash by $70, check #107.
- Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.Hajun Company started its business on May 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $5,000 from their personal account to the business account. B. Paid rent $400 with check #101. C. Initiated a petty cash fund $200 check #102. D. Received $400 cash for services rendered E. Purchased office supplies for $90 with check #103. F. Purchased computer equipment $1,000, paid $350 with check #104 and will pay the remainder in 30 days. G. Received $500 cash for services rendered. H. Paid wages $250, check #105. I. Petty cash reimbursement office supplies $25, Maintenance Expense $125, Miscellaneous Expense $35. Cash on hand $18. Check #106. J. Increased Petty Cash by $50, check #107.On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
- Domingo Company started its business on January 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of $9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for $25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of $3,250 cash.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?On July 1, K. Resser opened Ressers Business Services. Ressers accountant listed the following chart of accounts: The following transactions were completed during July: a. Resser deposited 25,000 in a bank account in the name of the business. b. Bought tables and chairs for cash, 725, Ck. No. 1200. c. Paid the rent for the current month, 1,750, Ck. No. 1201. d. Bought computers and copy machines from Ferber Equipment, 15,700, paying 4,000 in cash and placing the balance on account, Ck. No. 1202. e. Bought supplies on account from Wigginss Distributors, 535. f. Sold services for cash, 1,742. g. Bought insurance for one year, 1,375, Ck. No. 1203. h. Paid on account to Ferber Equipment, 700, Ck. No. 1204. i. Received and paid the electric bill, 438, Ck. No. 1205. j. Paid on account to Wigginss Distributors, 315, Ck. No. 1206. k. Sold services to customers for cash for the second half of the month, 820. l. Received and paid the bill for the business license, 75, Ck. No. 1207. m. Paid wages to an employee, 1,200, Ck. No. 1208. n. Resser withdrew cash for personal use, 700, Ck. No. 1209. Required 1. Record the owners name in the Capital and Drawing T accounts. 2. Correctly place the plus and minus signs for each T account and label the debit and credit sides of the accounts. 3. Record the transactions in the T accounts. Write the letter of each entry to identify the transaction. 4. Foot the T accounts and show the balances. 5. Prepare a trial balance as of July 31, 20--. 6. Prepare an income statement for July 31, 20--. 7. Prepare a statement of owners equity for July 31, 20--. 8. Prepare a balance sheet as of July 31, 20--. LO 1, 2, 3, 4, 5, 6Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.