For each transaction, indicate how the item would appear on the cash flow 14. An P80,000 loan was made to a subsidiary. 15. Treasury bills were purchased for P50,000 cash. , Indicate whether the items is: (I) = a cash inflow (0) = a cash outflow (N) = neither a cash inflow or cash outflow Indicate also how the item would be classified on the cash flow statement using the following symbols. (0) (I) (F) operating activity investing activity financing activity does not appear in the statement of cash flow Transactions a b 1. Credit sales for the month are P240,000 2. Cash sales for the month are P200,000. 3. P40,000 of accounts receivable are collected. 4. Five-year bonds are issued at the face value of P600,000. 5. 2,000 shares of common stock are issued for P400,000. 6. Paid P4,000 in interest on a notes payable. 1. The company borrows P80,000 from the bank and signs a five-year note. 8. New equipment is purchased for P100,000 cash. 9. Repaid P20,000 in principal on a mortgage payable. 10. Paid P24,000 to employees for wages and salaries. II. Cash dividends of P40,000 are declared; payment will be made in 30 days 12. Cash dividends of P40,000 are declared and paid Immediately 15. P50,000 stock dividend was declared and paid.
For each transaction, indicate how the item would appear on the cash flow 14. An P80,000 loan was made to a subsidiary. 15. Treasury bills were purchased for P50,000 cash. , Indicate whether the items is: (I) = a cash inflow (0) = a cash outflow (N) = neither a cash inflow or cash outflow Indicate also how the item would be classified on the cash flow statement using the following symbols. (0) (I) (F) operating activity investing activity financing activity does not appear in the statement of cash flow Transactions a b 1. Credit sales for the month are P240,000 2. Cash sales for the month are P200,000. 3. P40,000 of accounts receivable are collected. 4. Five-year bonds are issued at the face value of P600,000. 5. 2,000 shares of common stock are issued for P400,000. 6. Paid P4,000 in interest on a notes payable. 1. The company borrows P80,000 from the bank and signs a five-year note. 8. New equipment is purchased for P100,000 cash. 9. Repaid P20,000 in principal on a mortgage payable. 10. Paid P24,000 to employees for wages and salaries. II. Cash dividends of P40,000 are declared; payment will be made in 30 days 12. Cash dividends of P40,000 are declared and paid Immediately 15. P50,000 stock dividend was declared and paid.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:For each transaction, indicate how the item would appear on the cash flow
15. Treasury bills were purchased for P50,000 cash.
, Indicate whether the items is:
(I)
(0)
(N)
a cash inflow
= a cash outflow
= neither a cash inflow or cash outflow
L Indicate also how the item would be classified on the cash flow statement
using the following symbols.
(0)
(I)
(F)
(N)
= operating activity
investing activity
financing activity
does not appear in the statement of cash flow
%3D
Transactions
a
b
1. Credit sales for the month are P240,000
2. Cash sales for the month are P200,000.
3. P40,000 of accounts receivable are collected.
4. Five-year bonds are issued at the face value of P600,000.
5. 2,000 shares of common stock are issued for P400,000.
6. Paid P4,000 in interest on a notes payable.
7. The company borrows P80,000 from the bank and
signs a five-year note.
8. New equipment is purchased for P100,000 cash.
9. Repaid P20,000 in principal on a mortgage payable.
10. Paid P24,000 to employees for wages and salaries.
11. Cash dividends of P40,000 are declared; payment
will be made in 30 days
12. Cash dividends of P40,000 are declared and paid
Immediately
15. P50,000 stock dividend was declared and paid.
14. An P80,000 loan was made to a subsidiary.
*. Treasury bills were purchased for P50,000 cash.
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