T ASK V C LASSIFICATIONS OF C ASH F LOWS (10 P OINTS ) Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year Use the following code O Operating Activities, I Investing Activities, and F Financing Activities I NSTRUCTION Assume this company uses the direct method If the event does not involve a cash flow that should be included in the statement of cash flows, use an X O OperatingActivities, I Investing Activities, F FinancingActivities X no Cash Flow (a) At year end, paid rent in advance for the next six months (b) Declared a dividend to be paid early next year (c) Recorded depreciation expense for the current year (d) Sold a parcel of unused land at a loss (e) Collected account receivable from a customer who made a large credit purchase in a prior period (f) Issued capital stock for cash management plans to use this cash to invest in marketable securities (g) Collected principal amount due on a note receivable (h) Used the cash received in d, above, to purchase marketable securities (i) Collected interest due on note receivable described in (g) above (j) Made an adjusting entry to accrue interest payable at year end

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

T ASK V C LASSIFICATIONS OF C ASH F LOWS (10 P OINTS ) Indicate how each of the following events should be classified in

TASK V

CLASSIFICATIONS OF CASH FLOWS (10 POINTS)

Indicate how each of the following events should be classified in a statement of cash flows for the current calendar year. Use the following code:

O = Operating Activities, I = Investing Activities, and F = Financing Activities

INSTRUCTION:

Assume this company uses the direct method. If the event does not involve a cash flow that should be included in the statement of cash flows, use an X.

O = OperatingActivities, I = Investing Activities, F = FinancingActivities X = no Cash Flow
	(a)	At year-end, paid rent in advance for the next six months.
	(b)	Declared a dividend to be paid early next year.
	(c)	Recorded depreciation expense for the current year
	(d)	Sold a parcel of unused land at a loss.
	(e)	Collected account receivable from a customer who made a large credit purchase in a prior period
	(f)	Issued capital stock for cash; management plans to use this cash to invest in marketable securities.
	(g)	Collected principal amount due on a note receivable.
	(h)	Used the cash received in d, above, to purchase marketable securities.
	(i)	Collected interest due on note receivable described in (g) above.
	(j)	Made an adjusting entry to accrue interest payable at year- end.