Accounting homework question help

Posted on 2013-11-22 13:22:00 in Accounting by TREVOR

An analysis of comparative balance sheets, the current year’s income statement, and the general ledger accounts of Solomon Corp. uncovered the following items. Assume all items involve cash unless there is information to the contrary.



Indicate how each item should be classified in the statement of cash flows using these four major classifications: operating activity (indirect method), investing activity, financing activity, and significant noncash investing and financing activity.



(a) Payment of interest on notes payable. Operating ActivityNoncash Investing and Financing ActivityFinancing ActivityInvesting Activity



(b) Exchange of land for patent. Investing ActivityFinancing ActivityNoncash Investing and Financing ActivityOperating Activity



(c) Sale of building at book value. Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and Financing Activity



(d) Payment of dividends. Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and Financing Activity



(e) Depreciation. Operating ActivityFinancing ActivityInvesting ActivityNoncash Investing and Financing Activity



(f) Receipt of dividends on investment in stock. Noncash Investing and Financing ActivityFinancing ActivityInvesting ActivityOperating Activity



(g) Receipt of interest on notes receivable. Financing ActivityInvesting ActivityNoncash Investing and Financing ActivityOperating Activity



(h) Issuance of capital stock. Financing ActivityOperating ActivityInvesting ActivityNoncash Investing and Financing Activity



(i) Amortization of patent. Noncash Investing and Financing ActivityFinancing ActivityInvesting ActivityOperating Activity



(j) Issuance of bonds for land. Investing ActivityFinancing ActivityOperating ActivityNoncash Investing and Financing Activity



(k) Purchase of land. Operating ActivityNoncash Investing and Financing ActivityInvesting ActivityFinancing Activity



(l) Conversion of bonds into common stock. Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and Financing Activity



(m) Loss on sale of land. Financing ActivityInvesting ActivityOperating ActivityNoncash Investing and Financing Activity



(n) Retirement of bonds. Investing ActivityOperating ActivityFinancing ActivityNoncash Investing and Financing Activity

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