114. For each of the following transactions, indicate the type by entering AS for asset source transactions, AU for asset use transactions, AE for asset exchange transactions, and CE for claims exchange transactions.
1) ____Paid $2,000 in dividends to its stockholders.
2) ____Recorded the accrual of $1,000 in salaries to be paid later.
3) ____Issued common stock for $20,000 in cash.
4) ____Earned revenue to be collected next year.
5) ____Paid the salaries accrued in #2 above.
6) ____Received cash from customers in #4 above.
7) ____Purchased supplies on account.
8) ____Received $500 from a customer for services to be provided later.
1) Assets (cash) decreased, Equity (retained earnings from dividends) decreased
2) Liabilities (salaries payable) increased, Equity (retained earnings from salaries expense) decreased
3) Assets (cash) increased, Equity (common stock) increased
4) Assets (accounts receivable), Equity (retained earnings from revenue) increased
5) Assets (cash) decreased, Liabilities (salaries payable) decreased
6) Assets (cash) increased, Assets (accounts receivable) decreased
7) Assets (supplies) increased, Liabilities (accounts payable) increased
8) Assets (cash) increased, Liabilities (unearned revenue) increased
115. Classify each of the following transactions for the purpose of the statement of cash flow as operating activities (OA), investing activities (IA), financing activities (FA), or not reported on the statement of cash flows (NA).
1) _____Sold land.
2) _____Made adjusting entry to recognize interest revenue on investments.
3) _____Borrowed funds from the bank.
4) _____Paid rent in advance for the next six months.
5) _____Paid cash to settle accrued salary expense.
6) _____Purchased supplies on account.
7) _____Collected accounts receivable.
1) Purchasing and selling long-lived assets is an investing activity
2) Adjusting entries never affect cash flows
3) Borrowing cash is a financing activity
4) Paying rent, including paying in advance, is an operating activity
5) Paying salaries is an operating activity
6) Making purchase on account does not affect cash flows
7) Collecting cash from customers is an operating activity