Question

Mountain water corp. issued common stock of​ $28,000 to pay off​ long-term notes payable of ​$28,000. in what​ section(s) would these transactions be​ recorded?

Answer 1

These transactions would be recorded in the non-cash investing and financing activities. Since this that does not directly affect the cash on hand, instead, the issuance of common stock to retire long-term debt is done.