Question

Mountain Water Corp. issued a common stock of $28,000 to pay off long-term notes payable of $28,000. In what section(s) would these transactions be recorded?

  • Financing activities payment of the note, $(28,000)
  • Financing activities cash receipt, $28,000
  • Non-cash investing and financing activities, $28,000
  • Both a and b are correct.

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Cash Flow Statements

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