CP 14–1

Required:

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

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

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Depreciation expense for equipment was $1,000.

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$10,000 of share capital was issued for cash.

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Cash dividends of $2,500 were declared and paid to shareholders.

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

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Land was purchased for $25,000 cash.

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$750 of accrued salaries was paid.

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A $5,000 short-term demand loan was obtained.

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$10,000 of accounts receivable was collected.

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

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Land was sold for $50,000 cash.

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

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$1,20 0 was paid for a 12-month insurance policy to take effect next year.

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A patent was amortized for $500.

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Shares were redeemed for $50,000 cash, their original purchase price.