Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 2.4P
To determine
Indicate whether each of given item is an investing (I) or financing (F), also indicate effect on the
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Students have asked these similar questions
Preparing the statement of cash flows.
For each transaction, identify the appropriate section on the statement of cash flows to report the transaction. Choose from: Cash flows from operating activities (O), Cash flows from investing activities (I), Cash flows from financing activities (F), or Is not reported on the statement of cash flows (X). If reported on the statement, decide whether the transaction should be shown as positive cash flow (+) or negative cash flow (–):
The business received cash from the issuance of common stock.
Paid cash on accounts payable for office supplies purchased.
Performed services for a customer on account.
Cash dividends were paid to stockholders.
Received cash from a customer for services performed.
Purchased equipment with cash.
Paid rent for the month.
Purchased land; signed a note payable.
Paid employees' wages for the week.
Incurred utility expense on the account.
Identify the section of the statement of cash flows (a–d) where each of the following items would be reported.a. Operating activitiesb. Financing activitiesc. Investing activitiesd. Schedule of noncash financing and investing
Increase in income taxes payable
Where does this will be on the cash flow statement ?
Preparing the statement of cash flows
For each transaction, identify the appropriate section on the statement of cash flows to report the transaction. Choose from: Cash flows from operating activities (O), Cash flows from investing activities (I), Cash flows from financing activities (F), or Is not reported on the statement of cash flows (X). If reported on the statement, decide whether the transaction should be shown as a positive cash flow (+) or a negative cash flow (–):
a. The business received cash from the issuance of common stock.
b. Paid cash on accounts payable for office supplies purchased.
c. Performed services for a customer on account.
d. Cash dividends were paid to stockholders.
e. Received cash from a customer for services performed.
f. Purchased equipment with cash.
g. Paid rent for the month.
h. Purchased land; signed a note payable.
i. Paid employees wages for the week.
j. Incurred utility expense on account.
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1QCh. 2 - Define the following: a. Asset b. Current asset c....Ch. 2 - Explain what the following accounting terms mean:...Ch. 2 - Why are accounting assumptions necessary?Ch. 2 - For accounting purposes, what is an account?...Ch. 2 - What is the fundamental accounting model?Ch. 2 - Prob. 7QCh. 2 - Explain what debit and credit mean.Ch. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - How is the current ratio computed and interpreted?Ch. 2 - Prob. 14QCh. 2 - Prob. 1MCQCh. 2 - Which of the following is not an asset? a....Ch. 2 - Total liabilities on a balance sheet at the end of...Ch. 2 - The dual effects concept can best be described as...Ch. 2 - The T-account is a tool commonly used for...Ch. 2 - Prob. 6MCQCh. 2 - The Cash T-account has a beginning balance of...Ch. 2 - Prob. 8MCQCh. 2 - At the end of a recent year, The Gap, Inc.,...Ch. 2 - Prob. 10MCQCh. 2 - Matching Definitions with Terms Match each...Ch. 2 - Matching Definitions with Terms Match each...Ch. 2 - Identifying Events as Accounting Transactions...Ch. 2 - Classifying Accounts on a Balance Sheet The...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Prob. 2.6MECh. 2 - Prob. 2.7MECh. 2 - Prob. 2.8MECh. 2 - Prob. 2.9MECh. 2 - Prob. 2.10MECh. 2 - Prob. 2.11MECh. 2 - Computing and Interpreting the Current Ratio...Ch. 2 - Identifying Transactions as Investing or Financing...Ch. 2 - Matching Definitions with Terms Match each...Ch. 2 - Identifying Account Titles The following are...Ch. 2 - Classifying Accounts and Their Usual Balances As...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Recording Investing and Financing Activities Refer...Ch. 2 - Prob. 2.7ECh. 2 - Recording Investing and Financing Activities...Ch. 2 - Analyzing the Effects of Transactions In...Ch. 2 - Analyzing the Effects of Transactions In...Ch. 2 - Prob. 2.11ECh. 2 - Inferring Investing and Financing Transactions and...Ch. 2 - Recording Journal Entries Nathanson Corporation...Ch. 2 - Prob. 2.14ECh. 2 - Analyzing the Effects of Transactions Using...Ch. 2 - Prob. 2.16ECh. 2 - Prob. 2.17ECh. 2 - Prob. 2.18ECh. 2 - Inferring Typical Investing and Financing...Ch. 2 - Prob. 2.20ECh. 2 - Identifying the Investing and Financing Activities...Ch. 2 - Prob. 2.22ECh. 2 - Identifying Accounts on a Classified Balance Sheet...Ch. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.5PCh. 2 - Prob. 2.6PCh. 2 - Prob. 2.1APCh. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Recording Transactions in T-Accounts, Preparing...Ch. 2 - Prob. 2.4APCh. 2 - Accounting for the Establishment of a New Business...Ch. 2 - Prob. 2.1CPCh. 2 - Prob. 2.2CPCh. 2 - Prob. 2.3CPCh. 2 - Prob. 2.4CPCh. 2 - Prob. 2.5CPCh. 2 - Prob. 2.6CPCh. 2 - Prob. 2.7CPCh. 2 - Prob. 2.8CP
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Similar questions
- For each of the following independent situations, place an (X) by the transactions that would be included in the statement of cash flows. Table 2.6arrow_forwardWhich is the proper order of the sections of the statement of cash flows? A. financing, investing, operating B. operating, investing, financing C. investing, operating, financing D. operating, financing, investingarrow_forwardIn which section of the statement of cash flows would each of the following transactions be included? For each, identify the appropriate section of the statement of cash flows as operating (O), investing (I), financing (F), or none (N). (Note: some transactions might involve two sections.) A. collected accounts receivable from customers B. issued common stock for cash C. declared and paid dividends D. paid accounts payable balance E. sold a long-term asset for the same amount as purchasedarrow_forward
- In computing the periods net operating cash flows, why are noncash expenses added back to net income?arrow_forwardAnalyzing Changes in Balance Sheet Accounts Refer to the information for Peterson Inc. above. Required: Indicate whether each of the changes above produces a cash increase, a cash decrease, or is a noncash activity.arrow_forwardOn which financial statement would the Supplies account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flowsarrow_forward
- Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for in activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. every cell will require entry. Enter any decreases to account balances and cash outflows with a minus sign.)arrow_forwardPlace the following items in the correct order as they would appear in the statement of cash flows: 1. Beginning cash balance 2. Ending cash balance 3. Investing activities 4. Financing activities 5. Net increase (decrease) in cash 6. Operating activities Statement of Cash Flows 1. 2. 3. 4. 6. 5.arrow_forward2. Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification...using the capital letter only: O...Operating Activity I...Investing Activity F...Financing Activity OI...Operating and Investing Activity N...Noncash Transaction Effect on Cash Flows...using the capital letter only: I...Increase D...Decrease N...No Effect Transaction Cash Flow Classification Effect on Cash Flows Increased accounts payable. Decreased inventory. Increased prepaid insurance. Earned a net income. Issued stock for cash. Retired long-term debt by issuing stock. Purchased a long-term investment with cash. Decreased interest payable. Decreased dividends receivable. Converted bonds to common stock.arrow_forward
- 3. Using the following answer keys, you are to identify in which activity each of the transactions is classified and its effect on cash flows. Cash Flow Classification...using the capital letter only: O...Operating Activity I...Investing Activity F...Financing Activity OI...Operating and Investing Activity N...Noncash Transaction Effect on Cash Flows...using the capital letter only: I...Increase D...Decrease N...No Effect Transaction Cash Flow Classification Effect on Cash Flows Declared and paid a cash dividend. Sold short-term trading securities at a gain. Retired fully depreciated equipment. Sold a machine at a loss. Purchased long-term available-for-sale securities. Decreased accounts receivable. Purchased 90-day Treasury bill. Incurred a net loss. Declared and issued a stock dividend. Sold treasury stock.arrow_forwardThe accuracy of the statement of cash flows can be verified by computing the change in the balance of the a.cash and cash equivalent accounts. b.asset and liability accounts. c.revenue account. d.equity account.arrow_forward2. On Jan. 3, 2018, ABC Company showed a cash balance of P320,000 and incurred the following: 2018 Transactions Jan. 10 Feb 1 Made additional capital investment, P200,000 worth of computer. Purchased tables and chairs amounting to P50,000, paid P25000 cash and the balance on account. Mar 15 April 31 May 1 balances Received proceeds from a bank loan amounting to P455,000. Mr. A withdrew P38,500 cash for personal use. Received from all account customers P228,000 payment on their account June 15 Aug 31 Paid 25% of Mar 15 bank loan plus P15,500 interest Received P420,000 advance payment from DEF Inc. for services to be rendered in the future. Sold steel cabinet with a book value of P40,000 for P35,000 Paid P74,000 expenses incurred in rendering consulting services. Sept 31 Dec 28arrow_forward
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