Question: E 2 2 . 1 ( LO 1 ) ( Classification of Transactions ) Red Hot Chili Peppers Co . had the following activity in
ELO Classification of Transactions Red Hot Chili Peppers Co had the following activity in its most recent year of operations.
Purchase of equipment.
Redemption of bonds payable.
Sale of building.
Depreciation.
Exchange of equipment for furniture.
Issuance of common stock.
Amortization of intangible assets.
Purchase of treasury stock.
Issuance of bonds for land.
Payment of dividends.
Increase in interest receivable on notes receivable.
Pension expense exceeds amount funded.
Instructions
Classify the items as operatingadd to net income; operatingdeduct from net income; investing; financing; or significant noncash investing and financing activities. Use the indirect method.
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