Question
17 Classify the following items as (1) operating, (2) investing, (3) financing, or (4) significant noncash investing and financing activities, using the direct method. (a)
Classify the following items as (1) operating, (2) investing, (3) financing, or (4) significant noncash investing and financing activities, using the direct method.
(a)Cash payments to employees.
Financing activity
Investing activity
Significant noncash investing and financing activities
Operating activity
(b)Redemption of bonds payable.
Investing activity
Significant noncash investing and financing activities
Operating activity
Financing activity
(c)Sale of building at book value.
Operating activity
Financing activity
Significant noncash investing and financing activities
Investing activity
(d)Cash payments to suppliers.
Operating activity
Significant noncash investing and financing activities
Financing activity
Investing activity
(e)Exchange of equipment for furniture.
Financing activity
Investing activity
Significant noncash investing and financing activities
Operating activity
(f)Issuance of preferred stock.
Significant noncash investing and financing activities
Operating activity
Investing activity
Financing activity
(g)Cash received from customers.
Operating activity
Significant noncash investing and financing activities
Financing activity
Investing activity
(h)Purchase of treasury stock.
Significant noncash investing and financing activities
Financing activity
Operating activity
Investing activity
(i)Issuance of bonds for land.
Significant noncash investing and financing activities
Operating activity
Financing activity
Investing activity
(j)Payment of dividends.
Operating activity
Investing activity
Financing activity
Significant noncash investing and financing activities
(k)Purchase of equipment.
Operating activity
Financing activity
Significant noncash investing and financing activities
Investing activity
(l)Cash payments for operating expenses.
Significant noncash investing and financing activities
Operating activity
Financing activity
Investing activity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Davis, Charles E., Elizabeth
1st Edition
0471699608, 978-0471699606
