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

(a) Payment of interest on notes payable.

(b) Exchange of land for patent.

(c) Sale of budding at book value.

(d) Payment of dividends

(e) Conversion of bonds into common stock.

(f) Receipt of interest on notes receivable.

(g) Issuance of capital stock

(h) Issuance of bonds for land.

(i) Purchase of land

(j) Receipt of dividends on investment in stock

(k) Retirement of bonds.

Instructions

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.

Answer rating: 100% (QA)

Event Items Classification a Payment of interest on notes payable Fin... View the full answer