Determine if the activity described flows through the SoCF, if so, what category? (Operating, Investing, or Financing). If it does not flow through the statement, identify it as non cash. If more than one, explain 1 234 5 6 7 Description Received payments on account from customers Paid cash for wages and salaries Purchased inventory for cash Received repayment on a loan with interest Paid the balance on an outstanding note payable, including interest Sold a piece of equipment for $75,000 resulting in a $2,000 gain Borrowed money from the bank. SOCF Category

Determine if the activity described flows through the SoCF, if so, what category? (Operating, Investing, or Financing). If it does not flow through the statement, identify it as non cash. If more than one, explain 1 234 5 6 7 Description Received payments on account from customers Paid cash for wages and salaries Purchased inventory for cash Received repayment on a loan with interest Paid the balance on an outstanding note payable, including interest Sold a piece of equipment for $75,000 resulting in a $2,000 gain Borrowed money from the bank. SOCF Category

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 13GI

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Question

Determine if the activity described flows through the SoCF, if
so, what category? (Operating, Investing, or Financing). If it
does not flow through the statement, identify it as non cash.
If more than one, explain
1
234
5
CO
6
7
Description
Received payments on account
from customers
Paid cash for wages and salaries
Purchased inventory for cash
Received repayment on a loan
with interest
Paid the balance on an
outstanding note payable,
including interest
Sold a piece of equipment for
$75,000 resulting in a $2,000 gain
Borrowed money from the bank.
SoCF Category

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Step 1: Categorizing various financial activities

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Step 2: Financial activities into the appropriate sections of the Statement of Cash Flows (SoCF).

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Step 3: Explanation of the SoCF

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The assumption that requires that only those things that can be expressed in money are included in the accounting records is the• periodicity assumption.• monetary unit assumption.economic entity assumption.• going concern assumption
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