MyAccountingLab Access Code
3rd Edition
ISBN: 9780132952644
Author: Pearson
Publisher: Pearson College Div
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Chapter 1, Problem 22EA
To determine
Classify each business transactions as an operating, investing or financing activity.
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For each of the following transactions, indicate whether operating (O), investing (I), or financingactivities (F) are affected and whether the effect is a cash inflow ( 1 ) or outflow ( 2 ), or (NE) if thetransaction has no effect on cash.TIP: Think about the journal entry recorded for the transaction. The transaction affects net cash flowsif and only if the account Cash is affected.1. Purchased new equipment with cash.2. Recorded and paid income taxes to the federal government.3. Issued shares of stock for cash.4. Prepaid rent for the following period.5. Paid cash to purchase new equipment.
During 20X2, LAL Corp. had the following cash flows: (1) received cash of $5,000 billed to a customer in 20X2; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issue; (4) paid dividends of $8,000 to its stockholders; (5) borrowed $50,000 from a local bank; and (6) purchased its own shares of common stock for $10,000.
What is LAL's net cash flows from financing activities for 20X2?
Select one:
a.
$32,000
b.
$16,000
c.
$22,000
d.
$40,000
e.
$42,000
Clear my choice
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $31,000 and has cash on hand of $18,000 contributed by Lanni’s owners.
For each of the following transactions, identify the real and/or financial assets that trade hands. Choose one option for following blank: A. real asset. B. financial asset. C. real liability. D. Finanical liability.
The bank loan is a Financial liability for Lanni, and a Financial asset for the bank. The cash Lanni receives is a Financial asset .
1. The new financial asset destroyed or created is Lanni's promissory note to repay the loan.
Lanni uses the cash from the bank plus $18,000 of its own funds to finance the development of new financial planning software.
Lanni transfers financial asset (cash) to the software developers. In return, Lanni receives the completed software package, which is a real asset.
Lanni exchanges the real asset (the software) for a Financial asset, which is 1,400 shares of…
Chapter 1 Solutions
MyAccountingLab Access Code
Ch. 1 - 1. What is the main purpose of a business? 2....Ch. 1 - Prob. 2YTCh. 1 - 1. What are the two sources of financing for a...Ch. 1 - 1. What are revenues and expenses? 2. What are the...Ch. 1 - 1. What are the two parts of shareholders equity?...Ch. 1 - Prob. 6YTCh. 1 - Prob. 7YTCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3Q
Ch. 1 - Prob. 4QCh. 1 - What are the advantages of the corporate form of...Ch. 1 - What are the disadvantages of the corporate form...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - What are the basic financial statements? Describe...Ch. 1 - What makes the income statement different from the...Ch. 1 - Prob. 11QCh. 1 - What type of activities relate to what the firm is...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Online Pharmacy Company borrowed 5,000 cash from...Ch. 1 - Prob. 7MCQCh. 1 - During its first year of business, West Company...Ch. 1 - Interest is the cost of a. purchasing inventory....Ch. 1 - Prob. 10MCQCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Identify balance sheet items. (LO 4). Classify the...Ch. 1 - Calculate owners equity. (LO 4). Doughnut Company...Ch. 1 - Prob. 4SEACh. 1 - Prob. 5SEACh. 1 - Calculate owners equity. (LO 4). Pasta Enterprises...Ch. 1 - Super Shop had a retained earnings balance of...Ch. 1 - Prob. 8SEBCh. 1 - Prob. 9SEBCh. 1 - Breck Company shows 80,000 worth of assets on its...Ch. 1 - Prob. 11SEBCh. 1 - For each of the following, calculate the missing...Ch. 1 - Prob. 13SEBCh. 1 - M Company had a retained earnings balance of 4,200...Ch. 1 - Prob. 15EACh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 17EACh. 1 - Prob. 18EACh. 1 - Enter each transaction below into the accounting...Ch. 1 - Prob. 20EACh. 1 - For each of the transactions given, tell whether...Ch. 1 - Prob. 22EACh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 24EACh. 1 - Relationship between income statement and balance...Ch. 1 - Bob started a pool cleaning business on the first...Ch. 1 - Prob. 27EACh. 1 - Retained earnings and cash. (LO 4). Checkmate...Ch. 1 - Prob. 29EACh. 1 - Prob. 30EBCh. 1 - Prob. 31EBCh. 1 - Prob. 32EBCh. 1 - Prob. 33EBCh. 1 - Prob. 34EBCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Prob. 36EBCh. 1 - Prob. 37EBCh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 39EBCh. 1 - Prob. 40EBCh. 1 - Frank Frock started a consulting business on the...Ch. 1 - Prob. 42EBCh. 1 - Prob. 43EBCh. 1 - Prob. 44EBCh. 1 - Prob. 45PACh. 1 - Prob. 46PACh. 1 - Prob. 47PACh. 1 - Analyze business transactions and the effect on...Ch. 1 - Prob. 49PACh. 1 - Analyze business transactions and prepare the...Ch. 1 - Prob. 51PACh. 1 - Prob. 52PBCh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 54PBCh. 1 - Prob. 55PBCh. 1 - Prob. 56PBCh. 1 - Prob. 57PBCh. 1 - Prob. 58PBCh. 1 - Prob. 1FSACh. 1 - Prob. 2FSACh. 1 - Prob. 3FSACh. 1 - What is the Walt Disney Companys key objective? Go...
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The cash account balance of FDNACCT came from the following:
From clients for service rendered, P361,000,
From clients for services to be rendered, P23,000
From a bank loan, P102,000, and
From additional investment of the owner, P174,000.
How much is the income of the business?
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Santana Ray, ownrt of Business Solutions, decides to prepare a statement of cash flows for her business using the following financial data.
Computer service revenue. 25,007
Net sales 18,393
Total revenue 43 400
Cost of goods sold 14,152
Depreciation expense-office equipment 390
Depreciation expense-Computer equipment 1,230
Wages expense 2,750
Insurance expense 515
Rent expense 2,175
Computer supplies expense 1,305
Advertising expense 570
Mileage expense 260
Repairs expense-Computer 930
Total expenses 24,277
Net Income 19,123
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Ms. Nihal started her business by investing RO 30,000 in cash. This transaction would?
a.
increase assets and increase liabilities
b.
decrease assets and decrease liabilities
c.
increase assets and increase equity
d.
increase one asset and decrease another asset
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Your friend is in business and wants your advice on preparing and interpreting the statement of cash flows for 2016. Information regarding the business is as follows:
Cash received from customers
$ 175,000
Cash paid to vendors
75,000
Cash paid to employees
140,000
Cash paid for interest
35,000
Depreciation expense
40,000
Cash paid in acquiring equipment
375,000
Cash received from issuing bonds
250,000
Cash received from issued common stock
400,000
Beginning cash balance
95,000
Required:
a.
Based upon the above information, prepare the statement of cash flows using the direct method.
b.
Explain what has happened during the year.
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Use the following information to calculate the net cash provided (inflow) or used by (outflow) from financing activities for the Lulu Corporation: (a) Net income, $12,000 (b) Sold common stock for $44,000 cash (c) Paid cash dividend of $15,000 (d) Repayment of bond payable, $26,000 (e) Purchased equipment for $12,000 cash
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A company had the following cash flows for the year:
(a) Purchased land, $60,000
(b) Borrowed from a local bank, $100,000
(c) Paid employee salaries, $50,000
(d) Issued common stock, $75,000
(e) Paid dividends, $20,000
(f) Sold equipment, $40,000
(g) Sold services to customers, $120,000
What amount would be reported for net financing cash flows on the Statement of Cash Flows?
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In the chapter of Statement of Cash Flows. There is a question asks for - "Identify how each transaction would be classified for purpose of creating a statement of cash flows."
The Westside Deli has engaged in several transactions during the year as follows:
1. Purchased a delivery van for $15,000 and paid cash.
2. Sold 100 shares of capital stock with a $5 par value per share for $10 per share.
3. Borrowed $15,000 from the local savings and loan institution on a long-term basis.
4. Paid dividends of $10,000 during the year.
5. Sold investments, with book value of $8,000, for $6,000.
6. Purchased short-term investments (stock in a Fortune 500 company) for $4,500.
7. Repurchased fifty shares of its own capital stock for $300. Stock is to be held for pos-sible resale.
8. Paid $5,600 of long-term debt.
9. Exchanged 100 shares of capital stock for $1,000 of long-term debt owed to First Bank.
10. Purchased vacant land for $10,000 for potential expansion two years hence.
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For each of the following transactions indicate whether the cash flow classification is a) an operating activity, b) an investing activity, c) a financing activity or d) a noncash transaction.
Classification
1.
Issued common stock for cash.
2.
Payment of long-term note payable with cash
3.
Sold an investment at book value for cash.
4.
Received cash dividends on long-term investments.
5.
Converted bonds to common stock.
6.
Purchased a piece of equipment with cash.
7.
Purchased inventory with cash.
8.
Paid the insurance premium for the year.
9.
Purchased a new office building with a mortgage.
10.
Paid cash dividends.
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. Complete the following table regarding cash flows.
Transaction number
Transaction
CFO, CFI, CFF ?
Cash inflow or cash outflow ?
1.
Sold stock to the public
2.
Borrow money from a local bank
3.
Purchased equipment for cash
4.
Provided a service for cash
5.
Paid salaries to employees
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NEED NOW PLEASE!!! EVERYTHING NEEDED HAS BEEN INCLUDED BELOW!!
Create a Statement of Cash Flows using the information provided.
SCAC Private Security
Net income $360,000
Operating activities - (1) Salaries and wages payable $ 70,000 (2) Cash for services performed $50,000 (3) Purchase of equipment $5,000
Investing activities - (1) Purchased truck $40,000 (2) Sale of equipment $3,900
Financing activities - (1) Issuance of Common Stock $10,000 (2) Payment of cash dividends $15,000
1 non-cash transaction - depreciation expense: $3250
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Shown below are totals of the three sections from the SCF for the Nanood Motel for the year just ended. Analyze this information and prepare a report indicating your opinion regarding its sources and uses of cash and their impact on the future of the company. Your conclusions and recommendations should be supported with proper explanations and assumptions.
Statement of Cash Flows
Net cash provided by operating activities $5,000
Net cash used by investing activities (50,000)
Net cash provided by financing activities. $100,000
Increase in cash for the year 55,000
Cash at beginning of year…
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Using this information, complete the Statement of Cash Flows:
- Land was sold for $25,000 in cash- Furniture was purchased for $20,000 in cash- Goodwill was purchased for $66,000 in cash- The compnay sold stock for $227,000 in cash- Company stock was purchased for $20,000 incash- The company paid $4,000 in cash dividends
Unadjusted Trial Balance:
Account Title:
Debit
Credit
Cash
23,400
Inventory
60,000
Accounts Receivable
22,000
Office Supplies
5,000
Prepaid Insurance
3,000
Furniture
20,000
Land
24,000
Goodwill
40,000
Accounts Payable
19,900
Utilities Payable
600
Unearned Revenue
38,000
Common Stock
100,000
Dividends
4,000
Service Revenue
76,900
Cost of Goods Sold
25,000
Salaries Expense
6,000
Rent Expense
2,000
Utilities Expense
1,000
Total:
235,400
235,400
Adjusting Entries:
1. An inventory of supplies showed $3,000 were used up.2. The furniture was purchased for $30,000. It has $0 salvage value and…
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