Chap 21 investing, financing or operating

Question 1

Sale of common Stock

Answer 1

Financing

Question 2

Sale of Land

Answer 2

Investing

Question 3

Purchase treasury stock

Answer 3

financing

Question 4

merchandise sales

Answer 4

operating

Question 5

issuance of longterm note payable

Answer 5

financing

Question 6

purchase of merchandise

Answer 6

operating

Question 7

repayment of a note payable

Answer 7

financing

Question 8

employee salary

Answer 8

operating

Question 9

sale of equipment - gain

Answer 9

investing

Question 10

issuance of bonds

Answer 10

financing

Question 11

acquisition of bonds of another corporation

Answer 11

investing

Question 12

payment of semiannual interest on bonds payable

Answer 12

operating

Question 13

payment of cash dividend

Answer 13

financing

Question 14

purchase of building

Answer 14

investing

Question 15

collection of nontrade note receivable (principal amount)

Answer 15

investing

Question 16

loan to another company

Answer 16

investing

Question 17

retirement of common stock

Answer 17

financing

Question 18

income tax

Answer 18

operating

Question 19

issuance of a short term note payable

Answer 19

financing

Question 20

sale of a copyright

Answer 20

investing

Question 21

sales revenue

Answer 21

operating

Question 22

investment revenue

Answer 22

operating

Question 23

gain on sale of investment

Answer 23

investing

Question 24

COGS

Answer 24

operating

Question 25

salaries expense

Answer 25

operating

Question 26

depreciation expense

Answer 26

operating/investing

Question 27

amortization expense

Answer 27

operating/investing

Question 28

bad debt expense

Answer 28

operating

Question 29

insurance expense

Answer 29

operating

Question 30

interest expense

Answer 30

operating

Question 31

loss on sale of building investing

Answer 31

investing

Question 32

income tax expense

Answer 32

operating

Question 33

long term investment bond was sold

Answer 33

investing

Question 34

building that was destroyed and was 1/4 depreciated, some parts of building were sold after damage

Answer 34

investing

Question 35

right to use a building was aquired with a 7 year lease agreement

Answer 35

financing/investing

Question 36

bonds were retired at maturity

Answer 36

financing

Question 37

common stock was sold at par and so was preferred stock

Answer 37

financing

Question 38

shareholders were paid dividends

Answer 38

financing