QS 16-1 Classifying transactions by activity LO2

Classify the following cash flows as operating, investing, or financing activities:

Paid interest on outstanding bonds.

Received interest on investment.

Issued common shares for cash.

Paid dividends.

Paid property taxes on the company offices.

Received payments from customers.

Collected proceeds from sale of long-term investments.

Paid wages.

Purchased merchandise for cash.

Sold delivery equipment at a loss.

QS 16-2 Classifying transactions by activity LO2

Classify each of the following transactions as operating, financing, or investing activities, or none of these classifications, and state whether it is an inflow or outflow of cash.

The corporation's outstanding bonds were retired.

Land was sold at a gain.

The corporation's outstanding preferred shares were converted into common shares.

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

Additional common shares were issued for cash.

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

Paid utilities expense.

A share dividend was declared and issued on the corporation's outstanding common shares.