Connect 1 Semester Access Card for Fundamentals of Financial Accounting

5th Edition

ISBN: 9781259128547

Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 12, Problem 12.1CP

Determining Cash Flow Statement Effects of Transactions

For each of the following transactions, indicate whether operating (O), investing (1), or financing activities (F) are affected and whether the effect is a cash inflow ( + ) or outflow (−), or (NE) if the transaction has no effect on cash.

TIP: Think about the journal entry recorded for the transaction. The transaction affects net cash flows if and only if the account Cash is affected.

_______ 1. Purchased new equipment with cash.

_______ 2. Recorded and paid income taxes to the federal government.

_______ 3. Issued shares of stock for cash.

_______ 4. Prepaid rent for the following period.

_______ 5. Paid cash to purchase new equipment.

_______ 6. Issued long-term promissory notes for cash.

_______ 7. Collected payments on account from customers.

_______ 8. Recorded and paid salaries and wages to employees.

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Chapter 12, Problem 12.23E

Chapter 12, Problem 12.2CP

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Chapter 12 Solutions

Connect 1 Semester Access Card for Fundamentals of Financial Accounting

Ch. 12 - Compare the purposes of the income statement, the...Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Describe the types of items used to compute cash...Ch. 12 - Under the indirect method, depreciation expense is...Ch. 12 - Prob. 8Q Ch. 12 - Explain why a 50,000 increase in inventory during...Ch. 12 - Prob. 10Q

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Solution Summary: The author explains that the given transactions are matched with their cash flow activity and the related effects on cash.

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