Conceptual Exercise I (30 marks)

(Assignment to be submitted in excel only)

Q1. A company enters into the following transactions: (20 marks)

1. Interest is paid on a long-term loan.
2. Salaries are paid to the companys employees
3. Debentures are issued in exchange for cash
4. Income taxes are paid by the company
5. Refund paid to Customer due to order cancellation
6. Cash dividends are paid to shareholders.
7. The Equity Shares of another company are purchased as an investment
8. The company fires two employees due to fraud
9. An amount due from a customer is collected
10. Intangible assets are purchased from another company for cash

Required:

Segregate the transactions into current or non-current assets/liabilities and indicate whether there will

be an increase or decrease in the same. Please give suitable reasons for the classifications. Ignore

any Income statement classifications