question archive Among the transactions of Miyota Communications were the following: (10) a) Made payments on accounts payable to merchandise suppliers
Among the transactions of Miyota Communications were the following: (10) a) Made payments on accounts payable to merchandise suppliers
Subject:FinancePrice: Bought3
Among the transactions of Miyota Communications were the following:
(10)
a) Made payments on accounts payable to merchandise suppliers.
b) Paid the principle amount of a note payable to First Bank.
c) Paid interest charges relating to a note payable to First Bank.
d) Issued bonds payable for cash: management plans to use this cash in the near future to expand manufacturing and warehouse capabilities.
e) Paid salaries to employees in the finance department.
f) Collected an account receivable from a customer.
g) Transferred cash from the general bank account into a money market fund.
h) Used the cash received in d, above to purchase land and building suitable for a manufacturing facility.
i) Made a year end adjusting entry to recognize depreciation expense.
j) At year end purchased for cash an insurance policy covering the next 12 months.
Instructions)
Most of the preceding transactions should be included among the activities summarized in a statement of cash flows. For 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. If the transaction should not be included in the current years statement of cash flows briefly explain why not.( Assume that net cash flows from operating activities are determined by the direct method).
