Problems: Set A t took place during a recent fiscal year: P17-1A You are provided with the following transactions that took place during a rece assify transactions by vity. Indicate impact on and profit. (LO 1) AP Classification Cash Transaction 1. Paid telephone bill for the month. 2. Sold equipment for cash, at a loss. 3. Sold an investment at a gain. 4. Acquired a building by paying 10% in cash and signing a mortgage payable for the balance. 5. Made principal repayments on the mortgage. 6. Paid interest on the mortgage. 7. Sold inventory on account, at a price greater than cost. 8. Paid wages owing (previously accrued) to employees. 9. Declared and paid a cash dividend to common shareholders. 10. Paid rent in advance. 11. Sold inventory for cash, at a price greater than cost. 12. Wrote down the value of inventory to net realizable value, which was lower than cost. 13. Received semi-annual bond interest. 14. Received dividends on an investment in associate. 15. Issued common shares. 16. Paid a cash dividend to common shareholders. 17. Collected cash from customers on account. 18. Collected service revenue in advance. Instructions Assuming the company is reporting under IFRS, complete the above table for each of the follow The first one has been done for you as an example. (a) Classify each transaction as an operating activity (O), an investing activity (1), a financi noncash transaction (NC) on the cash flow statement. If there is a choice of how a tra indicate the alternative classifications. he following requirements (1), a financing activity (F), ord ow a transaction is classified, CHAPTER 17 ave no effect (NE) on cash reported on the on will increase (+), decrease ), or have no effect (NE) on cas Specify whether the transaction will incres balance sheet. how an operating activity can increase cash but not increase profit. Explain how an operatin --IT FURTHER