Chapter 1, Problem 1.37E

Preparing the statement of cash flows

For each transaction, identify the appropriate section on the statement of cash flows to report the transaction. Choose from: Cash flows from operating activities (O), Cash flows from investing activities (I), Cash flows from financing activities (F), or Is not reported o n the statement of cash flows (X). If reported on the statement, decide whether the transaction should be shown as a positive cash flow (+) or a negative cash flow (–):

1. a. The business received cash from the issuance of common stock.
2. b. Paid cash on accounts payable for office supplies purchased.
3. c. Performed services for a customer on account.
4. d. Cash dividends were paid to stockholders.
5. e. Received cash from a customer for services performed.
6. f. Purchased equipment with cash.
7. g. Paid rent for the month.
8. h. Purchased land; signed a note payable.
9. i. Paid employees wages for the week.
10. j. Incurred utility expense on account.