Below are transactions that took place in Placid Company during the past year: a. Equipment was purchased.

Question:

Below are transactions that took place in Placid Company during the past year:

a. Equipment was purchased.

b. A cash dividend was declared and paid.

c. Accounts receivable decreased.

d. Short-term investments were purchased.

e. Equipment was sold.

f. Preferred stock was sold to investors.

g. A stock dividend was declared and issued.

h. Interest was paid to long-term creditors.

i. Salaries and wages payable decreased.

j. Stock of another company was purchased.

k. Bonds were issued that will be due in 10 years.

l. Rent was received from subleasing office space, reducing rents receivable.

m. Common stock was repurchased and retired.

Required:

Prepare an answer sheet with the following headings:

Activity Not Transaction Operating Investing Financing Reported Source Use a. ь. etc.

Enter the transactions above on your answer sheet and indicate how the effects of each transaction would be classified on a statement of cash flows. Place an X in the Operating, Investing, or Financing column and an X in the Source or Use column as appropriate.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...