Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 20

Among the transactions of Salem, Inc., were the following:
a.ade payments on accounts payable to merchandise suppliers.
b.aid the principal amount of a note payable to First State Bank.
c.aid interest charges relating to a note payable to First State Bank.
d.ssued bonds payable for cash; management plans to use this cash in the near future to expand manufacturing and warehouse capabilities.
e.aid salaries to employees in the finance department.
f.ollected an account receivable from a customer.
g.ransferred cash from the general bank account into a money market fund.
h.sed the cash received in d, above, to purchase land and a building suitable for a manufacturing facility.
i.ade a year-end adjusting entry to recognize depreciation expense.
j.t year-end, purchased for cash an insurance policy covering the next 12 months.
k.aid the quarterly dividend on preferred stock.
l.aid the semiannual interest on bonds payable.
m.eceived a quarterly dividend from an investment in the preferred stock of another corporation.
n.old for cash an investment in the preferred stock of another corporation.
o.eceived cash upon the maturity of an investment in cash equivalents.Ignore interest.)
Instructions
Most of the preceding transactions should be included among the activities summarized in a statement of cash flows.or each transaction that should be included in this statement, indicate whether the transaction should be classified as an operating activity, an investing activity, or a financing activity.f the transaction should not be included in the current year's statement of cash flows, briefly explain why not.Assume that net cash flows from operating activities are determined by the direct method.