This Website Has Been Moved to a New Link


Loading

E13-2 Solomon Corp

Price: $1.99


An analysis of comparative balance sheets, the current year’s income statement,
and the general ledger accounts of Solomon Corp. uncovered the following items. Assume
all items involve cash unless there is information to the contrary.


(a) Payment of interest on notes payable.  (h) Issuance of capital stock. 
(b) Exchange of land for patent.  (i) Amortization of patent. 
(c) Sale of building at book value.  (j) Issuance of bonds for land. 
(d) Payment of dividends.  (k) Purchase of land. 
(e) Depreciation.  (l) Conversion of bonds into common stock. 
(f) Receipt of dividends on investment  in stock (m) Loss on sale of land. 
(g) Receipt of interest on notes receivable.  (n) Retirement of bonds. 

Instructions
Indicate how each item should be classified in the statement of cash flows using these four
major classifications: operating activity (indirect method), investing activity, financing

activity, and significant noncash investing and financing activity

No comments:

Post a Comment