Question
Eng Corporation, a private corporation reporting under ASPE, had the following transactions: Complete the below table for each of the following requirements. (Show amounts that
Eng Corporation, a private corporation reporting under ASPE, had the following transactions: Complete the below table for each of the following requirements. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter 0 for amounts.)
(a) | Classify each transaction as an operating activity, investing activity, financing activity, or noncash transaction. | |
(b) | Specify whether the transaction represents a cash inflow, cash outflow, or has no effect on cash, and in what amount. If there is no effect on cash, put 0 under the (b) column. |
(a) | (b) | ||||
---|---|---|---|---|---|
Transaction | Classification | Cash Inflow or Outflow | |||
1. | Sold inventory for $1,000 cash. | Operating | $1,000 | ||
2. (i) | Purchased a machine for $30,000. Made a $5,000 down payment. | select a classification NoncashFinancingInvestingOperating | $enter a dollar amount | ||
2. (ii) | Issued a long-term note for the remainder. | select a classification InvestingNoncashFinancingOperating | $enter a dollar amount | ||
3. | Issued common shares for $50,000. | select a classification InvestingOperatingFinancingNoncash | $enter a dollar amount | ||
4. | Collected $16,000 of accounts receivable. | select a classification NoncashInvestingFinancingOperating | $enter a dollar amount | ||
5. | Paid a $25,000 cash dividend. | select a classification FinancingNoncashOperatingInvesting | $enter a dollar amount | ||
6. | Sold a long-term equity investment with a carrying value of $15,000 for $10,000. | select a classification FinancingNoncashInvestingOperating | $enter a dollar amount | ||
7. | Sold $200,000 worth of bonds at par. | select a classification NoncashFinancingInvestingOperating | $enter a dollar amount | ||
8. | Paid $18,000 on accounts payable. | select a classification InvestingNoncashFinancingOperating | $enter a dollar amount | ||
9. | Purchased inventory for $28,000 on account. | select a classification InvestingFinancingNoncashOperating | $enter a dollar amount | ||
10. | Purchased a long-term investment in bonds for $100,000. | select a classification InvestingNoncashOperatingFinancing | $enter a dollar amount | ||
11. | Sold equipment with a carrying amount of $16,000 for $13,000. | select a classification InvestingNoncashFinancingOperating | $enter a dollar amount | ||
12. | Paid $12,000 interest expense on long-term notes payable. | select a classification NoncashFinancingOperatingInvesting | $enter a dollar amount |
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