(Classification of Transactions) Following are selected balance sheet accounts of Allman Bros. Corp. at December 31, 2008...
Question:
(Classification of Transactions) Following are selected balance sheet accounts of Allman Bros.
Corp. at December 31, 2008 and 2007, and the increases or decreases in each account from 2007 to 2008.
Also presented is selected income statement information for the year ended December 31, 2008, and additional information.
Additional information:
1. During 2008, equipment costing $45,000 was sold for cash.
2. Accounts receivable relate to sales of merchandise.
3. During 2008, $20,000 of bonds payable were issued in exchange for property, plant, and equipment.
There was no amortization of bond discount or premium.
Instructions Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.
1. Payments for purchase of property, plant, and equipment.
2. Proceeds from the sale of equipment.
3. Cash dividends paid.
4. Redemption of bonds payable.
Step by Step Answer:
Intermediate Accounting 2007 FASB Update Volume 2
ISBN: 9780470128763
12th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield