LONG PROBLEMS. Use Worksheet (yellow) as indicated. Problem 1. (30 mins.) Kopel had the following transactions during 2014. 1. Sold merchandise for P50,000 in cash 2. 3. 4. 5. Purchased a parcel of land. The company paid P20,000 cash and issued a note payable for the remainder. Purchased a building in exchange for a long-term note with a face value of P115,000. Collected P110,000 on a long-term note receivable. Included in the P100,000 is P6,000 interest earned and accrued in the previous period and P4,000 in interest earned in the current period. Collected P30,000 from customers that will not be earned until 2015. 6. Reacquired 5000 shares of its common stock for P10 per share. 5628 7. Paid P25,000 for wages incurred in prior period. 8. Retired P500,000 in bonds payable. The company gave the creditor P300,000 in cash and P200,000 in common stocks. 9. Purchased P40,000 of inventory on account. 10. Wrote off an open account receivable of P5,000 as uncollectible. 11. Recorded P90,000 in depreciation expense for the year. Use the following format in your worksheet to indicate the following. a. The section of the statement of cash flows in which the transaction would be listed. Use the following terms: Operating (direct method), investing, financing, or NA for items that will not be included in the cash flow statement.. b. Indicate by an X mark whether the transaction provided or used cash. C. Transaction The amount, if appropriate, that the company would report on the statement of cash flows. The first transaction is done for you as an example: Use the table given below. 1 Section Operating - direct Provided Used Amount X P50,000 2 3 4 5 6 7 8 9 10 11