Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

In the first column of the table below, indicate whether the activity mentioned is classified as operational (O), investment (I), or financing (F). In the

In the first column of the table below, indicate whether the activity mentioned is classified as operational (O), investment (I), or financing (F). In the second column, indicate whether the corresponding amount will be added (+) or subtracted (-) and specifically identify the section (s) of the Statement of Cash Flows that are affected. In the third column write down the corresponding quantity (s).

Type of activity (+, -, N/A) Quantity Transaction
(1) Delivery Equipment con un costo original de $97,000, con una depreciacin acumulada de $42,100, se vendi por $57,500 durante el ao. (Delivery Equipment, which cost $97,000 and on which accumulated depreciation totaled $42,100 on the date of sale, was sold for $57,500 during the year).
(2) $ 500,000 in bonds maturing in 20 years were issued. They were issued at 99%. (Issued $ 500,000 of 20-year, 10% bonds payable at 99%).
(3) A loan for $ 43,000 was made with interest at a rate of 8% for 5 years and a promissory note was issued for the same amount in favor of Regional Bank. (Borrowed $ 43,000 from Regional Bank, issuing a 5-year, 8% note for that amount).
(4) The balance of the Patent account at the beginning of the year was $ 35,000. The ending balance of the account at the end of the year is $ 29,000. (The Patents account balances at the beginning and at the end of the year are $ 35,000 and $ 29,000 respectively).
(5) Bonds with a face amount of $ 525,000 over which there is a portion of $ 40,000 of Discount not amortized, are withdrawn paying the sum of $ 475,000. (A $ 525,000 bond issue on which there is an unamortized discount of $ 40,000 is redeemed for $ 475,000).
(6) An issue of bonds with a face amount of $ 500,000 over which there is $ 35,000 of Premium on Bonds unamortized are withdrawn paying the sum of $ 540,000. (A $ 500,000 bond issue on which there is an unamortized premium of $ 35,000 is redeemed for $ 540,000).
(7) The Accounts Payable account reflects an increase of $ 7,000. (Increase in Accounts Payable of $ 7,000).
(8) The Accumulated Depletion account increased $ 80,000 during the year. (The Accumulated Depletion account increased by $ 80,000).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions