Below are typical transactions for Hewlett-Packard.Type ofBusiness Activity Transactions1.______________ Pay amount owed to the bank for previous borrowing.2. ______________ Pay utility costs.3. ______________ Purchase equipment to be used in operations.4. ______________ Provide services to customers.5. ______________ Purchase office supplies.6. ______________ Purchase a building.7. ______________ Pay workers’ salaries.8. ______________ Pay for research and development costs.9. ______________ Pay taxes to the IRS.10. ______________ Sell common stock to investors.Required:Indicate whether each transaction is classified as a financing, investing, or operating activity.

Below are typical transactions for Hewlett-Packard.Type ofBusiness Activity Transactions1. Pay amount owed to the bank for previous borrowing.2. Pay utility costs.3. Purchase equipment to be used in operations.4. Provide services to customers.5. Purchase office supplies.6. Purchase a building.7. Pay workers’ salaries.8. Pay for research and development costs.9. Pay taxes to the IRS.10. Sell common stock to investors.Required:Indicate whether each transaction is classified as a financing, investing, or operating activity.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter4: Journalizing And Posting Transactions

Section: Chapter Questions

Problem 3MC: To purchase an asset such as office equipment on account, you would credit which account? (a) Cash...

See similar textbooks

Similar questions

Business makes payment of Bank loan. Which of the following is the correct journal entry? a. Dr Bank Loan account Cr Cash account b. Dr Cash account Cr Loan c. Dr Cash account. Cr Capital d. Dr Bank Cr Cash account
which of the following is an operating avtivity? A. billing customers for services rendered but not yet paid for B. paying off a loan to the bank C. purchasing equipment for cash D. receiving cash investments from owners
Below is a list of common accounts.Accounts Debit or CreditCash 1.__________Service Revenue 2.__________Salaries Expense 3.__________Accounts Payable 4.__________Equipment 5.__________Retained Earnings 6.__________Utilities Expense 7.__________Accounts Receivable 8.__________Dividends 9.__________Common Stock 10.__________Required:Indicate whether the normal balance of each account is a debit or a credit.
To purchase an asset such as office equipment on account, you would credit which account? (a) Cash (c) Accounts Payable (b) Accounts Receivable (d) Capital
Classify the following into Assets and Liabilities. (i) Bank balance (vii) Premises (ii) We owe for goods (viii) Creditor for goods (iii) Motor vehicle (ix) Loan from D Randle (iv) Fixture and fittings (x) Cash in hand (v) Loan from Pringle (xi) Owing to bank (vi) Office machinery (xii) Debtor
__________ is the crediting of one account through the abstraction of money from another account.A. SkimmingB. LappingC. RiggingD. Padding
What is the main purpose of accounts receivable in factoring? a. To meet immediate cash needs of the business b. To create an additional guarantee of collection c. To invest accounts receivable in another business d. To establish a legal proof for future use
Why did you select those customer accounts? also how to use a cell reference to enterthe answer for the 1st question? ( Whatis the dollar amount of total receivables? Use a cell reference to input your answer)
Which of the following can have a VERY high amount of accounts receivable & long receivables collection period? O Bank O Retail B2B (Business to business) Retail B2C (Business to customer) O Utility company
Synergy Enterprise has the following financial statement items: Details Classification of account 1. Trade payable 2. Brand 3. Cash in hand 4. Cost of sales 5. Transportation charges 6. Property 7. Bond 8. Unearned ticket revenue 9. Notes payable 10. Bad debt recovered 11. Commission received 12. Telephone bill 13. Printing cost 14. 15. Accrued salary 16. Prepaid insurance Required: Indicate whether each of the accounts above is a Current Asset (CA), Non-Current asset (NCA), Current Liability (CL), Non-Current liability (NCL), Revenue (R), and Expense (E). Use the following format to prepare your answer. Details Classification of account Example: Salary and wages Expenses Trade payable 1. 2. Brand 3. Cash in hand Decrease in doubtful debt
Match each definition with its correct term: Amounts owed by customers on account. [ Choose ] The analysis of customer balances by the length of time they have been unpaid. [ Choose ] A method of accounting for bad debts that involves estimating uncollectible accounts at the end of each period. [ Choose ] An expense account to record uncollectible [ Choose ] receivables. The net amount a company expects to [ Choose ] receive in cash. A method of accounting for bad debts that involves expensing accounts at the time they [ Choose ] are determined to be uncollectible. A note that is not paid in full at maturity. [ Choose ] The party in a promissory note who is making [ Choose ] the promise to pay. Written promise (as evidenced by a formal [ Choose ] instrument) for amounts to be received. Various forms of nontrade receivables, such [ Choose ] as interest receivable and income taxes refundable. The party to whom payment of a promissory [ Choose ] note is to be made. Management estimates…
For each transaction, suggest two internal controls you would implement. Justify your response. Here's an example to guide you: · A. Transaction: Big Marker purchased supplies on account, $100. B. Business process: Acquisition/ payment. C. Journal entry: Debit Supplies $100. Credit Accounts Payable $100. D. Elements: Supply is an asset; accounts payable, a liability E. Forms: Purchase requisition and purchase order. F. Additional information: name of the primary contact person at the vendor, specific type and quantity of supplies purchased (e.g., 10 boxes of paper clips) G. Internal controls: Transaction authorizations would ensure that only the purchasing department can issue purchase orders. Sending a blind copy of the purchase e Receiving department would aid in the segregation of duties.