Below are a number of transactions that took place in Seneca Company during the past year:

a. Common stock was sold for cash.

b. Interest was paid on a note, decreasing Interest Payable.

c. Bonds were retired.

d. A long-term loan was made to a subsidiary.

e. Interest was received on the loan in (d) above, reducing Interest Receivable.

f. A stock dividend was declared and issued on common stock.

g. A building was acquired by issuing shares of common stock.

h. Equipment was sold for cash.

i. Short-term investments were sold.

j. Cash dividends were declared and paid.

k. Preferred stock was converted into common stock.

l. Deferred Income Taxes, a long-term liability, was reduced.

m. Dividends were received on stock of another company held as an investment.

n. Equipment was purchased by giving a long-term note to the seller.

Required:

Prepare an answer sheet with the following column headings:

Enter the letter of the transaction in the left column and indicate whether the transaction would be a source, use, or neither. Then place an X in the appropriate column to show the proper classification of the transaction on the statement of cash flows, or to show if it would be reported in a separate schedule or not reported on the statement at all.

Transcribed Image Text:

Reported in Activity Source, Use, a Separate Not on the Operating Inve sting Financing Schedule Trans action or Neither Statement