Question

During its first week, Hu Na Company had these transactions.

1. Issued 100,000 HK$50 par value ordinary shares for HK$8,000,000 cash.

2. Borrowed HK$2,000,000 from Castle Bank, signing a 5-year note bearing 8% interest.

3. Purchased two semi-trailer trucks for HK$1,700,000 cash.

4. Paid employees HK$120,000 for salaries and wages.

5. Collected HK$200,000 cash for services performed.

Classify each of these transactions by type of cash flow activity.

Question

Piekarski OAO had the following transactions.

1. Issued 200,000 of bonds payable.

2. Paid utilities expense.

3. Issued 500 shares of preference shares for 45,000.

4. Sold land and a building for 250,000.

5. Lent 30,000 to Zarembski Company, receiving Zarembski's 1-year, 12% note.

Classify each of these transactions by type of cash flow activity (operating, investing, or financing).

Question

Laurent AG had these transactions during 2017.

(a) Issued CHF50,000 par value ordinary shares for cash.

(b) Purchased a machine for CHF30,000, giving a long-term note in exchange.

(c) Issued CHF200,000 par value ordinary shares upon conversion of bonds having a face value of CHF200,000.

(d) Declared and paid a cash dividend of CHF18,000.

(e) Sold a long-term investment with a cost of CHF15,000 for CHF15,000 cash.

(f) Collected CHF16,000 of accounts receivable.

(g) Paid CHF18,000 on accounts payable.

Instructions

Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or non-cash investing and financing activities.