Chapter 10, Problem 29AP

To determine

Identify each of these 13 events and transactions as an asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Explain how each event affects assets, liabilities, equity, net income, and cash flow by placing a ‘+’ for increase, ‘–’ for decrease, or ‘NA’ for not affected under each of the categories. In cash flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA).

Events of transaction are given below:

1. 1. Acquired cash from the issue of common stock.
2. 2. Issued six year bonds.
3. 3. Purchase of land.
4. 4. Received land and rental income.
5. 5. Recognized interest expense, including the straight line amortization of the discount.
6. 6. Prepared to close entry for rent revenue.
7. 7. Prepared to close entry for interest expense.
8. 8. Received land rental income.
9. 9. Recognized interest expense, including the straight line amortization of the discount.
10. 10. Prepared to close entry for rent revenue.
11. 11. Prepared to close entry for interest expense.
12. 12. Sold the land at a gain.
13. 13. Retired the bonds at face value.