Operating / Investing / Financing Activities Identification Identify each transaction as an operating (O), investing (I), financing (F), or other non-cash (NC) event. 1 Borrowed $50,000 on a long-term note payable 2 Made a sale for $2,500 on open account. 3 Reclassified as a short-term liability the long-term notes payable of $30,000 now due within one year. 4 Purchased a building for $120,000 with a $20,000 cash down payment and signed a long-term note payable for the balance. 5 Paid the maturity value of $1,050 on a short-term note payable with a face value of $1,000. 6 Wrote off $500 in uncollectible accounts receivable. 7 Paid the liability for accrued wages payable of $700 as well as the current periods’ wages of $4,500. 8 Paid $2,000 on accounts payable. 9 Sold marketable securities that cost $12,000 for $12,750. 10 Issued 200 shares of $5 par value common stock in payment for equipment having a fair market value of $17,400.
Operating / Investing / Financing Activities Identification
Identify each transaction as an operating (O), investing (I), financing (F), or other non-cash (NC) event.
1 Borrowed $50,000 on a long-term note payable
2 Made a sale for $2,500 on open account.
3 Reclassified as a short-term liability the long-term notes payable of $30,000 now due within one year.
4 Purchased a building for $120,000 with a $20,000 cash down payment and signed a long-term note payable for the balance.
5 Paid the maturity value of $1,050 on a short-term note payable with a face value of $1,000.
6 Wrote off $500 in uncollectible accounts receivable.
7 Paid the liability for accrued wages payable of $700 as well as the current periods’ wages of $4,500.
8 Paid $2,000 on accounts payable.
9 Sold marketable securities that cost $12,000 for $12,750.
10 Issued 200 shares of $5 par value common stock in payment for equipment having a fair market value of $17,400.
Step by step
Solved in 2 steps
