Laurent Company entered into this transaction during 2014. (a) Issued CHF 50,000 worth of ordinary shares for cash. (b) Purchased a machine for CHF30,000, providing a long-term note in exchange. (c) Issued ordinary shares of CHF 200,000 on the conversion of the double bonds value of CHF200,000. (d) Declare and pay a cash dividend of CHF18,000. (e) Sell the long-term investment at a cost of CHF15,000 for cash of CHF15,000. (f) Collect CHF16,000 from accounts receivable. (g) Paid CHF 18,000 on accounts payable. Instruction: Analyze transactions and show whether each transaction generates cash flow from operating activities, investing activities, financing activities, or non-cash investing and funding activities.
Laurent Company entered into this transaction during 2014.
(a) Issued CHF 50,000 worth of ordinary shares for cash.
(b) Purchased a machine for CHF30,000, providing a long-term note in exchange.
(c) Issued ordinary shares of CHF 200,000 on the conversion of the double bonds value of CHF200,000.
(d) Declare and pay a cash dividend of CHF18,000.
(e) Sell the long-term investment at a cost of CHF15,000 for cash of CHF15,000.
(f) Collect CHF16,000 from
(g) Paid CHF 18,000 on accounts payable.
Instruction:
Analyze transactions and show whether each transaction generates
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
