This exercise will give you practice in classifying transactions by activity.The Wolfson Corporation had the following transactions during 2014:Issued $100,000 par value common stock in exchange for cash.Issued $22,000 par value common stock in exchange for equipment.Sold services for $52,000 cash.Purchased an investment for $18,000 cash.Collected $9,000 of accounts receivable.Paid $14,000 of accounts payable.Declared and paid a cash dividend of $12,000.Sold a long-term investment with a cost of $18,000 for $18,000 cash.Purchased a machine for $35,000 by giving a long-term note in exchange.Exchanged land costing $20,000 for equipment costing $20,000.Paid salaries of $6,000.Paid $1,000 for advertising services.Paid $8,000 for insurance coverage for a future period.Borrowed $31,000 cash from the bank.Paid $11,000 interest.Paid $31,000 cash to the bank to repay loan principal.Issued $40,000 par value common stock upon conversion of bonds payable having a face value of $40,000.Paid utilities of $4,000.Loaned a vendor $6,000 cash.Collected interest of $2,000.Collected $6,000 loan principal from borrower.Purchased treasury stock for $4,000.Sold treasury stock for $6,000 (cost was $4,000).Paid taxes of $20,000.InstructionsAnalyze each transaction above and indicate whether it resulted in a(n):(a) inflow of cash from operating activities.(b) outflow of cash from operating activities.(c) inflow of cash from investing activities.(d) outflow of cash from investing activities.(e) inflow of cash from financing activities.(f) outflow of cash from financing activities, or(g) noncash investing and/or financing activity.
This exercise will give you practice in classifying transactions by activity.The Wolfson Corporation had the following transactions during 2014:Issued $100,000 par value common stock in exchange for cash.Issued $22,000 par value common stock in exchange for equipment.Sold services for $52,000 cash.Purchased an investment for $18,000 cash.Collected $9,000 of accounts receivable.Paid $14,000 of accounts payable.Declared and paid a cash dividend of $12,000.Sold a long-term investment with a cost of $18,000 for $18,000 cash.Purchased a machine for $35,000 by giving a long-term note in exchange.Exchanged land costing $20,000 for equipment costing $20,000.Paid salaries of $6,000.Paid $1,000 for advertising services.Paid $8,000 for insurance coverage for a future period.Borrowed $31,000 cash from the bank.Paid $11,000 interest.Paid $31,000 cash to the bank to repay loan principal.Issued $40,000 par value common stock upon conversion of bonds payable having a face value of $40,000.Paid utilities of $4,000.Loaned a vendor $6,000 cash.Collected interest of $2,000.Collected $6,000 loan principal from borrower.Purchased treasury stock for $4,000.Sold treasury stock for $6,000 (cost was $4,000).Paid taxes of $20,000.InstructionsAnalyze each transaction above and indicate whether it resulted in a(n):(a) inflow of cash from operating activities.(b) outflow of cash from operating activities.(c) inflow of cash from investing activities.(d) outflow of cash from investing activities.(e) inflow of cash from financing activities.(f) outflow of cash from financing activities, or(g) noncash investing and/or financing activity.
This exercise will give you practice in classifying transactions by activity.The Wolfson Corporation had the following transactions during 2014:Issued $100,000 par value common stock in exchange for cash.Issued $22,000 par value common stock in exchange for equipment.Sold services for $52,000 cash.Purchased an investment for $18,000 cash.Collected $9,000 of accounts receivable.Paid $14,000 of accounts payable.Declared and paid a cash dividend of $12,000.Sold a long-term investment with a cost of $18,000 for $18,000 cash.Purchased a machine for $35,000 by giving a long-term note in exchange.Exchanged land costing $20,000 for equipment costing $20,000.Paid salaries of $6,000.Paid $1,000 for advertising services.Paid $8,000 for insurance coverage for a future period.Borrowed $31,000 cash from the bank.Paid $11,000 interest.Paid $31,000 cash to the bank to repay loan principal.Issued $40,000 par value common stock upon conversion of bonds payable having a face value of $40,000.Paid utilities of $4,000.Loaned a vendor $6,000 cash.Collected interest of $2,000.Collected $6,000 loan principal from borrower.Purchased treasury stock for $4,000.Sold treasury stock for $6,000 (cost was $4,000).Paid taxes of $20,000.InstructionsAnalyze each transaction above and indicate whether it resulted in a(n):(a) inflow of cash from operating activities.(b) outflow of cash from operating activities.(c) inflow of cash from investing activities.(d) outflow of cash from investing activities.(e) inflow of cash from financing activities.(f) outflow of cash from financing activities, or(g) noncash investing and/or financing activity.
This exercise will give you practice in classifying transactions by activity.The Wolfson Corporation had the following transactions during 2014:Issued $100,000 par value common stock in exchange for cash.Issued $22,000 par value common stock in exchange for equipment.Sold services for $52,000 cash.Purchased an investment for $18,000 cash.Collected $9,000 of accounts receivable.Paid $14,000 of accounts payable.Declared and paid a cash dividend of $12,000.Sold a long-term investment with a cost of $18,000 for $18,000 cash.Purchased a machine for $35,000 by giving a long-term note in exchange.Exchanged land costing $20,000 for equipment costing $20,000.Paid salaries of $6,000.Paid $1,000 for advertising services.Paid $8,000 for insurance coverage for a future period.Borrowed $31,000 cash from the bank.Paid $11,000 interest.Paid $31,000 cash to the bank to repay loan principal.Issued $40,000 par value common stock upon conversion of bonds payable having a face value of $40,000.Paid utilities of $4,000.Loaned a vendor $6,000 cash.Collected interest of $2,000.Collected $6,000 loan principal from borrower.Purchased treasury stock for $4,000.Sold treasury stock for $6,000 (cost was $4,000).Paid taxes of $20,000.InstructionsAnalyze each transaction above and indicate whether it resulted in a(n):(a) inflow of cash from operating activities.(b) outflow of cash from operating activities.(c) inflow of cash from investing activities.(d) outflow of cash from investing activities.(e) inflow of cash from financing activities.(f) outflow of cash from financing activities, or(g) noncash investing and/or financing activity.
