Problem 12-9B Classification of Transactions [LO12-1] Below are a number of tran
ID: 2534470 • Letter: P
Question
Problem 12-9B Classification of Transactions [LO12-1] Below are a number of transactions that took place in Willie Corporation during the past year: Indicate how each of them would be classified on a statement of cash flow by selecting the appropriate option from the dropdown provided under Activity and Cash inflow/Outflow. (If no option is suitable, select option "None".) Cash Inflow I Outflow Transaction Activity a. Common stock was sold for cash. b. Equipment was sold for cash. c. A long-term loan was made to a subsidiary. d. Interest was received on loan to subsidiary. e. Interest Payable, a current liability, was reduced. f. A stock dividend was declared and issued on common stock. g. A building was acquired by issuing shares of common stock. h. Accrued Income Taxes, a current liability account, was reduced. i. Long-term investments were sold. j. Cash dividends were declared and paid. k. Preferred stock was sold for cash. . Bonds were retired m. Dividends were received on an investment. n. Equipment was purchased by giving a long-term note to the seller.Explanation / Answer
a Common Stock Sold for Cash Financing Activity Cash Inflow b Equipment sold for Cash Investing Activity Cash Inflow c Long Term Loan made to subsidiary Investing Activity Cash Outflow d Interest Received on loan from subsiaidary Investing Activity Cash Inflow e Interest Payable, current liability was reduced None None f A stock dividend was issued and paid on common stock Financing Activity Cash Outflow g A building was acquired by issuing shares of common stock None None h Accrued Income Taxes,a current laibility account was reduced None None i Long Term Investments were sold Investing Activity Cash Inflow j Cash Dividends were declared and paid Financing Activity Cash Outflow k Preferred Stock was sold for cash Financing Activity Cash Inflow l Bonds were retired Financing Activity Cash Outflow m Dividends were received on investment Investing Activity Cash Inflow