1. Classification of cash flows Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: 0 = operating activities, I = investing activities, and F- financing activities. Assume use of the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X. (a) Recorded depreciation expense for the current year. (b). Paid the principal amount due on the note payable to First Bank. (c) Received a dividend from an investment in IBM common stock. (d) Paid a dividend to stockholders. (e) Paid the interest on a note payable to First Bank. (f) On December 28, made a large credit sale; terms, 2/10, n/30 (g) Transferred cash from a checking account into a money market fund. (h) Made an adjusting entry to record accrued wages payable at the end of the period. (1) Paid an account payable for inventory purchased in a prior accounting period. 6) Purchased plant assets for cash.
1. Classification of cash flows Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code: 0 = operating activities, I = investing activities, and F- financing activities. Assume use of the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X. (a) Recorded depreciation expense for the current year. (b). Paid the principal amount due on the note payable to First Bank. (c) Received a dividend from an investment in IBM common stock. (d) Paid a dividend to stockholders. (e) Paid the interest on a note payable to First Bank. (f) On December 28, made a large credit sale; terms, 2/10, n/30 (g) Transferred cash from a checking account into a money market fund. (h) Made an adjusting entry to record accrued wages payable at the end of the period. (1) Paid an account payable for inventory purchased in a prior accounting period. 6) Purchased plant assets for cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Transcribed Image Text:TINKER TOYS CORPORATION
1. Classification of cash flows
Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the
following code: 0 = operating activities, I = investing activities, andF- financing activities.
Assume use of the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows,
use an X.
(a) Recorded depreciation expense for the current year.
(b). Paid the principal amount due on the note payable to First Bank.
(c) Received a dividend from an investment in IBM common stock.
(d) Paid a dividend to stockholders.
(e) Paid the interest on a note payable to First Bank.
(f) On December 28, made a large credit sale; terms, 2/10, n/30
(g) Transferred cash from a checking account into a money market fund.
(h) Made an adjusting entry to record accrued wages payable at the end of the period.
(1) Paid an account payable for inventory purchased in a prior accounting period.
G) Purchased plant assets for cash.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education