Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and

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Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information

Following are selected balance sheet accounts of Del Conte Corp.

Additional Information:
a. Accounts receivable relate to sales of merchandise.
b. During 2018, equipment costing $40,000 was sold for cash.
c. During 2018, bonds payable with a face value of $20,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.
Required:
Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item:
a. Determine the amount that should be reported in Del Conte's 2018 statement of cash flows.
b. Using the list below, determine the category in which the amount should be reported in the statement of cash flows.
O. Operating activity
I. Investing activity
F. Financing activity

Following are selected balance sheet accounts of Del Conte Corp.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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