During the last 2 years of operations, Lelkes Company had the following transactions: a. Purchased land for

Question:

During the last 2 years of operations, Lelkes Company had the following transactions:

a. Purchased land for $1,000,000.

b. Issued bonds with a 5-year maturity date for $3,000,000.

c. Reported a loss of $2,000,000 for the most recent year.

d. Bought equipment for $500,000.

e. Issued common stock for $2,000,000.

f. Bought a 30% interest in a company.

g. Retired a long-term note payable.

h. Reported a profit for the year ($500,000).

i. Paid dividends of $1,000,000.

Required:

Classify each of these transactions as an operating activity, an investing activity, or a financing activity and indicate whether the activity is a source of cash or a use of cash.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...