All transactions involving Notes Payable and Interest Payable for Rork Company during the year 19x7 are presented in the general journal.

Determine the cash flow amounts (positive or negative) and describe how these transactions are to be recorded on the statement of cash flows (financing, oper¬
ating, or investing activity).

Transcribed Image Text:

GENERAL JOURNAL PAGE DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 19x7 Reversing Entry 1 2 Jan. 1 Interest Payable 66000 2 3 Interest Expense 66000 3 4 4 5 Feb. 3 Notes Payable 2805000 5 6 7 Cash 8 Interest Expense Repayment of note at maturity. 225500 6 30305 00 7 9 10 Dec. 1 Cash 11 12 Notes Payable Bank loan, receiving the full 13 principal. 14 15 Adjusting Entry 16 31 interest Expense 17 Interest Payable 8 9 1925000 10 19 25 000 11 12 13 14 15 41250 16 4125 41250 17 200