Reference no: EM132487177

The following transactions were carried out by Crozier Manufacturing Limited.

Required:

Question 1: Indicate into which category each transaction or adjustment is placed in the statement of cash flows: operating (O), financing (F), or investing (I) activities.

Point 1: ____ A payment of $5,000 was made on a non-current bank loan.

Point 2: ____ Depreciation expense for equipment was $1,000.

Point 3: ____ $10,000 of common stock was issued for cash.

Point 4: ____ Cash dividends of $2,500 were declared and paid to stockholders.

Point 5: ____ A non-current bank loan was assumed in exchange for equipment costing $7,000.

Point 6: ____ Land was purchased for $25,000 cash.

Point 7: ____ $750 of accrued salaries was paid.

Point 8: ____ A $5,000 operating loan was obtained. The loan is due on demand and is an integral part of the company's cash management strategy.

Point 9: ____ $10,000 of accounts receivable was collected.

Point 10: ____ A building was purchased for $80,000: $30,000 was paid in cash and the rest was borrowed.

Point 11: ____ Land was sold for $50,000 cash.

Point 12: ____ Equipment was sold for $6,000. The original cost was $10,000. The related accumulation depreciation was $3,000.

Point 13: ____ $1,200 cash was paid for a 12-month insurance policy to take effect next year.

Point 14: ____ A patent was amortized for $500.

Point 15: ____ Stock was redeemed for $50,000 cash, the original purchase price.