Identifying activity categories of transactions—direct method
Consider the following transactions:
|
a. Land |
17,000 |
g. Salary expense |
5,200 |
||
|
Cash |
17,000 |
Cash |
5,200 |
||
|
b. Cash |
9,800 |
h. Cash |
92,000 |
||
|
Equipment |
9,800 |
Common stock |
92,000 |
||
|
c. Bonds payable |
36,000 |
i. Treasury stock |
16,300 |
||
|
Cash |
36,000 |
Cash |
16,300 |
||
|
d. Building |
128,000 |
j. Cash |
3,200 |
||
|
Note payable |
128,000 |
Interest revenue |
3,200 |
||
|
e. Cash |
2,200 |
k. Land |
64,000 |
||
|
Accounts receivable |
2,200 |
Cash |
64,000 |
||
|
f. Dividends payable |
19,800 |
l. Accounts payable |
10,200 |
||
|
Cash |
19,800 |
Cash |
10,200 |
Requirement
1. Indicate where, if at all, each of the transactions would be reported on a statement of cash flows prepared by the direct method and the accompanying schedule of noncash investing and financing activities.