The following transactions were recorded by Macintosh Corporation: 1. Purchased a building and took on a mortgage

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The following transactions were recorded by Macintosh Corporation:

1. Purchased a building and took on a mortgage for $150,000.

2. Purchased merchandise for $12,000 cash.

3. Collected an account receivable of $4,000.

4. Recorded depreciation of $20,000.

5. Paid dividends of $8,000 to shareholders.

6. Received $15,000 cash from the sale of a short-term investment, and recorded a loss of $2,000 on the sale.

7. Issued additional common stock and received $5,000.

8. Paid interest of $11,000 on the mortgage.

Required Classify these transactions in terms of the balance sheet equation given below and indicate which transactions would be reported on the statement of cash flows by labeling the transaction as an operating,investing,or financing activity

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Financial Accounting Reporting And Analysis

ISBN: 9780324149999

6th Edition

Authors: Earl K. Stice, James Stice, Michael Diamond, James D. Stice

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