The Vikon Company had the following selected transactions during the past year:

Transaction Analysis Preparing a Simple Cash Flow Statement

a. Sold (issued) 1,000 shares of common stock, $\$ 10$ par, for $\$ 25$ per share.

b. Collected $\$ 100,000$ of accounts receivable.

c. Paid dividends to current stockholders in the amount of $\$ 50,000$ (assume dividends declared earlier, establishing a dividends payable account).

d. Received $\$ 1,500$ interest on a note receivable from a company officer.

e. Paid the annual insurance premium of $\$ 1,200$.

f. Recorded depreciation expense of $\$ 5,000$.

1. Prepare appropriate journal entries for each of the above transactions. (Omit explanations.)

2. For each transaction, indicate the amount of cash inflow or outflow and also how each cash flow would be classified on a statement of cash flows.