The Westside Deli has engaged in several transactions during the year as follows: 1. Purchased a delivery van for $15,000 and paid cash. 2. Sold 100 shares of capital stock with a $5 par value per share for $10 per share. Statement of Cash Flows 483 3. Borrowed $15,000 from the local savings and Joan institution on a long-term basis. 4. Paid dividends of $10,000 during the year. 5. Sold investments, with book value of $8,000, for $6,000. 6. Purchased short-term investments (stock in a Fortune 500 company) for $4,500. 7. Repurchased fifty shares of its own capital stock for S300. Stock is to be held for pos- sible resale. 8. Paid $5,600 of long-term debt. 9. Exchanged 100 shares of capital stock for $1,000 of long-term debt owed to First Bank. 10. Purchased vacant land for $10,000 for potential expansion two years hence. Required: Identify how each transaction would be classified for the purpose of creating a statement of cash flows. se follow the format below to solve the problem: 1. Cash Outflow Investing Activity

The Westside Deli has engaged in several transactions during the year as follows: 1. Purchased a delivery van for $15,000 and paid cash. 2. Sold 100 shares of capital stock with a $5 par value per share for $10 per share. Statement of Cash Flows 483 3. Borrowed $15,000 from the local savings and Joan institution on a long-term basis. 4. Paid dividends of $10,000 during the year. 5. Sold investments, with book value of $8,000, for $6,000. 6. Purchased short-term investments (stock in a Fortune 500 company) for $4,500. 7. Repurchased fifty shares of its own capital stock for S300. Stock is to be held for pos- sible resale. 8. Paid $5,600 of long-term debt. 9. Exchanged 100 shares of capital stock for $1,000 of long-term debt owed to First Bank. 10. Purchased vacant land for $10,000 for potential expansion two years hence. Required: Identify how each transaction would be classified for the purpose of creating a statement of cash flows. se follow the format below to solve the problem: 1. Cash Outflow Investing Activity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What are the different careers available to those who study and specialize in financial management?
84
Explain the usefulness of Financial statement information to the following stakeholders: i. Financial Analyst ii. Employee iii. Debtors iv .Government Agency y s gency
Knowledge Check 01 Financial statement analysis provides information to internal users to improve: O financial statements O their own goals O efficiency and effectiveness O company performance and financial condition
What are the importance of studying financial accounting II?
importance of financial decision making in business
1. What is management accounting practice? Explain briefly with relevant example. 2. What are the current issues related to management accounting practices?
25.Financial accounting reports are directed toward the needs of a. regulatory agencies. b. internal users. c. external users. d. stockholders.
The main user group of management accounting is the O A. managers O B. investors O C.creditors O D. lenders
List six differences between financial accounting and managerial accounting.
1. Explain detail about Ethical values and principles in management accounting give two examples
How business firm face management challenges in covid-19 crisis?