Classifying Accounting Transactions. Presented below is a list of accounting transactions for the Green Company. Classify each of the transactions as an operating (O) activity transaction, an investing (I) activity transaction, a financing (F) activity transaction, or as none-of-the-above (N). Purchase of machinery for cash Cash payment on loan principal Collection of cash on outstanding accounts receivable Payment of a stock dividend Sale of preferred stock for cash Prepaid the office rent for six months Cash payment of income tax expense Sale of land held as an investment for cash Declared (but did not pay) a cash dividend Purchased treasury stock using cash
Classifying Accounting Transactions. Presented below is a list of accounting transactions for the Green Company. Classify each of the transactions as an operating (O) activity transaction, an investing (I) activity transaction, a financing (F) activity transaction, or as none-of-the-above (N). Purchase of machinery for cash Cash payment on loan principal Collection of cash on outstanding accounts receivable Payment of a stock dividend Sale of preferred stock for cash Prepaid the office rent for six months Cash payment of income tax expense Sale of land held as an investment for cash Declared (but did not pay) a cash dividend Purchased treasury stock using cash
Classifying Accounting Transactions. Presented below is a list of accounting transactions for the Green Company. Classify each of the transactions as an operating (O) activity transaction, an investing (I) activity transaction, a financing (F) activity transaction, or as none-of-the-above (N). Purchase of machinery for cash Cash payment on loan principal Collection of cash on outstanding accounts receivable Payment of a stock dividend Sale of preferred stock for cash Prepaid the office rent for six months Cash payment of income tax expense Sale of land held as an investment for cash Declared (but did not pay) a cash dividend Purchased treasury stock using cash
Classifying Accounting Transactions. Presented below is a list of accounting transactions for the Green Company. Classify each of the transactions as an operating (O) activity transaction, an investing (I) activity transaction, a financing (F) activity transaction, or as none-of-the-above (N).
Purchase of machinery for cash
Cash payment on loan principal
Collection of cash on outstanding accounts receivable
Payment of a stock dividend
Sale of preferred stock for cash
Prepaid the office rent for six months
Cash payment of income tax expense
Sale of land held as an investment for cash
Declared (but did not pay) a cash dividend
Purchased treasury stock using cash
Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
