Diravy, Inc., had the following transactions during the year. Clas sify each transaction as (O) an operating
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
College Accounting Chapters 1-26
ISBN: 9780395796993
6th Edition
Authors: Douglas J. McQuaig, Patricia A. Bille
Question Posted: