onmOll StWeR$750,000 U) Bebit Retained Earnings $250,000; credit Stock Split Payable $250,000. D) Debit Retained Earnings $750,000; credit Common Stock Split Distributable $750,000 E) No entry is made for this transaction. 12) The appropriate section in the statement of cash flows for reporting the cash purchase of long term assets such as equipment is: A) Financing activities. B) Schedule of noncash investing or financing activity. C) Investing activities. D) Operating activities. E) This is not reported on the statement of cash flows. A company's transactions with its creditors to borrow money and/or to repay the principal amounts of both short- and long-term debt are reported as cash flows from: A) Financing activities. B) Indirect activities. 13) C) Investing activities. D) Operating activities. E) Direct activities. 14) On July 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the current year ended December 31? A) $2,400. E) $1,400. D) $400. C) $1,000. B) $ 1,200