Various transactions of Plymouth Corporation are shown below:
1. Bonds payable are issued for cash at a premium.
2. Equipment is sold for cash at book value.
3. Land is purchased by signing a 5-year, 8% note payable.
4. 1,000 shares of ABC Corporation's common stock are purchased for cash.
5. The conversion option is utilized and bonds payable are converted into common stock.
6. Common stock, with a $1 par value, is sold for $10 per share.
7. Interest receivable on a short-term note receivable is received.
8. Cash is paid on accounts payable.
9. Cash dividends are declared and paid.
10. Merchandise is sold for cash to customers.
Required: Categorize each transaction as either an operating activity, investing activity, financing activity, or a noncash activity.

Question

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The Answer of Various transactions of Plymouth Corporation are shown below:
1. Bonds payable are issued for cash at a premium.
2. Equipment is sold for cash at book value.
3. Land is purchased by signing a 5-year, 8% note payable.
4. 1,000 shares of ABC Corporation's common stock are purchased for cash.
5. The conversion option is utilized and bonds payable are converted into common stock.
6. Common stock, with a $1 par value, is sold for $10 per share.
7. Interest receivable on a short-term note receivable is received.
8. Cash is paid on accounts payable.
9. Cash dividends are declared and paid.
10. Merchandise is sold for cash to customers.
Required: Categorize each transaction as either an operating activity, investing activity, financing activity, or a noncash activity.

Various Transactions of Plymouth Corporation Are Shown Below