MyAccountingLab Access Code
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 - 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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  • 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.
    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.
    . 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
  • 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
    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…
    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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