The following is a list of transactions and changes in account balances that occurred during the year:
Question:
a. Income taxes payable decreased.
b. Paid cash in satisfaction of a matured bond payable.
c. Paid a cash dividend.
d. Accounts payable increased.
e. Accounts receivable doubled before returning to the beginning balance by year end.
f. Sold equipment for cash at a gain.
g. Purchased a new warehouse by issuing bonds.
h. Purchased inventory for cash.
i. Purchased treasury stock.
Required
Assuming the indirect method for operating activities, indicate whether each transaction would be included in operating activities, investing activities, financing activities, non-cash disclosures, or not reported. Note that some transactions may impact multiple sections.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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