Identify the Statement of Cash Flow Section For each of the transactions below, determine whether it involves an operating activity, investing
Identify the Statement of Cash Flow Section;For each of the transactions below, determine whether it involves an operating activity, investing activity or financing activity. For each item, place an ?X? in the appropriate column.;Transaction;Operating Activity;Investing Activity;Financing Activity;Office supplies were purchased for cash.;Dividends were declared and paid.;Bonds payable with a face value of $100,000 were sold for cash at 96.;A building was purchased and paid for.;Treasury stock was sold.;Accounts Payable were paid off.;Common stock of another firm was purchased for cash.;A machine with an original cost of $30,000 was sold for $7,000. Accumulated Depreciation to date was $23,000.;Short-term marketable securities (not cash equivalents) were sold.;Interest expense on the bonds above was paid in cash.;Land was purchased for cash.;Dividends were received on the common stock acquired above.;Use the following data for ABC Music Co. to prepare a statement of cash flows using the indirect method for the year ended June 30, 2016.;ABC Music Co.;Income Statement;For the Year Ended June 30, 2016;Net Sales;$350,000;Less Expenses;Cost of Goods Sold;$200,000;Depreciation Expense;20,000;Administrative Expenses;52,000;Selling Expenses;45,000;Loss on Sale of Investment;500;Total Expenses;317,500;Net Income;$ 32,500;ABC Music Co.;Comparative Balance Sheets;June 30 2016 and 2015;Assets;2016;2015;Cash;$ 4,500;$ 15,000;Accounts Receivable (net);35,000;27,500;Inventory;40,000;50,000;Prepaid Expenses;3,000;2,500;Long Term Investments;20,000;25,000;Plant and Equipment;80,000;40,000;Accumulated Depreciation;(20,000);(12,000);Total Assets;$162,500;$148,000;Liabilities;Accounts Payable;$ 2,000;$ 6,000;Wages Payable;220;260;Taxes Payable;780;740;Notes Payable;20,000;12,000;Total Liabilities;$23,000;$ 19,000;Stockholders? Equity;Common Stock;$ 65,000;$ 65,000;Retained Earnings;81,500;64,000;Total Paid in Capital and Retained Earnings;146,500;129,000;Less: Treasury Stock;(7,000);0;Total Stockholders? Equity;$139,500;$129,000;Total Liabilities and Stockholders? Equity;$162,500;$148,000;Additional Information;? A plant asset costing $20,000 was sold for its book value of $8,000. And additional plant asset was purchased for $60,000.;? A long term investment was sold for $4,500.;? The outstanding notes are long term. An $8,000 note was issued during 2016.;? Common stock was repurchased.
Paper#81744 | Written in 18-Jul-2015Price : $27