Reference no: EM132487177
The following transactions were carried out by Crozier Manufacturing Limited.
Required:
Question 1: Indicate into which category each transaction or adjustment is placed in the statement of cash flows: operating (O), financing (F), or investing (I) activities.
Point 1: ____ A payment of $5,000 was made on a non-current bank loan.
Point 2: ____ Depreciation expense for equipment was $1,000.
Point 3: ____ $10,000 of common stock was issued for cash.
Point 4: ____ Cash dividends of $2,500 were declared and paid to stockholders.
Point 5: ____ A non-current bank loan was assumed in exchange for equipment costing $7,000.
Point 6: ____ Land was purchased for $25,000 cash.
Point 7: ____ $750 of accrued salaries was paid.
Point 8: ____ A $5,000 operating loan was obtained. The loan is due on demand and is an integral part of the company's cash management strategy.
Point 9: ____ $10,000 of accounts receivable was collected.
Point 10: ____ A building was purchased for $80,000: $30,000 was paid in cash and the rest was borrowed.
Point 11: ____ Land was sold for $50,000 cash.
Point 12: ____ Equipment was sold for $6,000. The original cost was $10,000. The related accumulation depreciation was $3,000.
Point 13: ____ $1,200 cash was paid for a 12-month insurance policy to take effect next year.
Point 14: ____ A patent was amortized for $500.
Point 15: ____ Stock was redeemed for $50,000 cash, the original purchase price.