Question

I. For each of the following transactions, identify whether it is: an Operating Activity (OA), an Investing Activity (IA), a Financing Activity (FA); or Not Applicable (NA), in the Statement of Cash Flows. Earned $1,000 cash in service revenues. Purchased $900 worth of cleaning supplies, on account. Paid monthly rent, $2,000. Purchased cleaning equipment, for $4,000, signing a promissory note. Paid dividends to shareholders for $1,000. Borrowed $50,000 from Real Bank for operating capital. Purchased a $5,000 certificate of deposit that earns 5% interest. Paid salaries to employees for $2,000. Shareholders invested $25,000 in common stock. Received electric bill, $400, to be paid next month.

          I. For each of the following transactions, identify whether it is: an Operating Activity (OA), an Investing Activity (IA), a Financing Activity (FA); or Not Applicable (NA), in the Statement of Cash Flows.

Earned $1,000 cash in service revenues.
Purchased $900 worth of cleaning supplies, on account.
Paid monthly rent, $2,000.
Purchased cleaning equipment, for $4,000, signing a promissory note.
Paid dividends to shareholders for $1,000.

Borrowed $50,000 from Real Bank for operating capital.
Purchased a $5,000 certificate of deposit that earns 5% interest.
Paid salaries to employees for $2,000.
Shareholders invested $25,000 in common stock.
Received electric bill, $400, to be paid next month.

I. For each of the following transactions, identify whether it is: an Operating Activity (OA), an Investing Activity (IA), a Financing Activity (FA); or Not Applicable (NA), in the Statement of Cash Flows.

Earned 1,000 cash in service revenues.
Purchased900 worth of cleaning supplies, on account.
Paid monthly rent, 2,000.
Purchased cleaning equipment, for4,000, signing a promissory note.
Paid dividends to shareholders for 1,000.

Borrowed50,000 from Real Bank for operating capital.
Purchased a 5,000 certificate of deposit that earns 5% interest.
Paid salaries to employees for2,000.
Shareholders invested 25,000 in common stock.
Received electric bill,400, to be paid next month.

Added by Julia M.

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