Diravy, Inc., had the following transactions during the year. Clas sify each transaction as (O) an operating

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Diravy, Inc., had the following transactions during the year. Clas¬

sify each transaction as (O) an operating activity, (I) an investing activity, (F) a financing activity, or (X) a noncash transaction. Also note each transaction as a plus ( + ) for inflow, a minus (-) for outflow, or zero (0) if neither inflow nor outflow.

1. Paid $10,000 for rent.

2. Purchased a bond for $5,000.

3. Paid $2,000 interest.

4. Sold equipment for $4,000.

5. Repaid the principal of a mortgage of $25,000.

6. Received cash from customers of $75,000.

7. Paid $3,000 of federal income tax.

8. Paid $7,500 for computer equipment.

9. Extended a customer’s note of $1,400.

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College Accounting Chapters 1-26

ISBN: 9780395796993

6th Edition

Authors: Douglas J. McQuaig, Patricia A. Bille

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