To determine Identify the operating, financing and investing activities and the direction of increase or decrease in the amount. Explanation Indicate the effects of the transactions on the statement of cash flows: Transaction Operating, Financing and Investing activities Increase or decrease in the amount ($) a. Received four shareholders’ contributions totaling $30,200 cash to form the corporation; issued 400 shares of $0.10 par value common stock. F +30,200 b. Paid three months’ rent for the store at $1,750 per month (recorded as prepaid expenses). O -5,250 c. Purchased and received candy for $6,000 on account, due in 60 days. NE NE d. Purchased supplies for $1,560 cash. O -1,560 e. Negotiated and signed a two-year $11,000 loan at the bank, receiving cash at the time. F +11,000 f. Used the money from ( e ) to purchase a computer for $2,750 (for recordkeeping and inventory tracking); used the balance for furniture and fixtures for the store. I -11,000 g...

10th Edition

ISBN: 9781260918373

Author: Libby

Publisher: INTER MCG

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Chapter 3, Problem 5P

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Identify the operating, financing and investing activities and the direction of increase or decrease in the amount.

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Chapter 3, Problem 4P

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FINANCIAL ACCOUNTING ETEXT CARD

Ch. 3 - Prob. 1Q Ch. 3 - Prob. 2Q Ch. 3 - 3. Write the income statement equation and define...Ch. 3 - Prob. 4Q Ch. 3 - 5. Define accrual accounting and contrast it with...Ch. 3 - 6. What criteria must normally be met for revenue...Ch. 3 - Prob. 7Q Ch. 3 - 8. Explain why stockholders’ equity is increased...Ch. 3 - 9. Explain why revenues are recorded as credits...Ch. 3 - 10. Complete the following matrix by entering...

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