Question

Selected transactions for the Ecker Company are listed below.

1. Collected accounts receivable. select a type of activity.
2. Declared and paid dividends on common stock.
3. Sold long-term investments for cash.
4. Issued stock for equipment.
5. Repaid five year note payable.
6. Paid employee wages.
7. Converted bonds payable to common stock.
8. Acquired long-term investment with cash.
9. Sold buildings and equipment for cash.
10. Sold merchandise to customers.
Instructions:
Classify each transaction as either an operating activity, an investing activity, a financing activity, or a non-cash activity.

Answer 1

he/she is right

Step-by-step explanation:

i got the same answer

Answer 2

Transaction # Classification

1. operating activity

2. financing activity

3. investing activity

4. non-cash activity

5. financing activity

6. operating activity

7. non-cash activity

8. investing activity

9. investing activity

10. operating activity

Step-by-step explanation:

operating activity

These are daily trading activities generating cash such as sales to customers or repayments to suppliers.

investing activity

These are activities involving the purchase and sale of assets or investments

financing activity

These are activities involving raising of capital and repayments of capital there-off

non-cash activity

All transactions that do not include movement of cash fall in this category.