Rensing Corporation had these transactions during 2010. (a) Purchased a machine for ($ 30,000), giving a long-term
Question:
Rensing Corporation had these transactions during 2010.
(a) Purchased a machine for \(\$ 30,000\), giving a long-term note in exchange.
(b) Issued \(\$ 50,000\) par value common stock for cash.
Classify transactions by type of activity. \((502)\)
(c) Issued \(\$ 200,000\) par value common stock upon conversion of bonds having a face value of \(\$ 200,000\).
(d) Declared and paid a cash dividend of \(\$ 18,000\).
(e) Sold a long-term investment with a cost of \(\$ 15,000\) for \(\$ 15,000\) cash.
(f) Collected \(\$ 16,000\) of accounts receivable.
(g) Paid \(\$ 18,000\) on accounts payable.
Instructions:
Analyze the transactions and indicate whether each transaction resulted in a cash flow from operating activities, investing activities, financing activities, or noncash investing and financing activities.
Step by Step Answer:
Accounting Tools For Business Decision Making
ISBN: 9780470377857
3rd Edition
Authors: Paul D. Kimmel