Motif Furniture is an Austin- based furniture company. For each of the following first- quarter transactions, indicate

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Motif Furniture is an Austin- based furniture company. For each of the following first- quarter transactions, indicate whether operating (O), investing (I), or financing activities (F) are affected and whether the effect is a cash inflow (1) or outflow (2), or (NE) if the transaction has no effect on cash.
____ 1. Bought used equipment for cash.
____ 2. Paid cash to purchase new equipment.
____ 3. Declared and paid cash dividends to stockholders.
____ 4. Collected payments on account from customers.
____ 5. Recorded and paid interest on debt to creditors.
____ 6. Repaid principal on loan from bank.
____ 7. Prepaid rent for the following period.
____ 8. Made payment to suppliers on account.
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Fundamentals of Financial Accounting

ISBN: 978-0078025914

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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