Question

Selected transactions of Ehrlich Company are listed below. 1. Accounts payable are paid in cash. 2. Land is sold for cash at book value 3. A building is purchased for cash. 4. Bonds payable are issued for cash at a discount 5. Inventory is purchased for cash 6. Equipment is purchased by signing a 3-year, 10% note payable. 7. Cash dividends on common stock are declared and paid. 8. 100 shares of XYZ stock are purchased for cash as an investment. 9. Common stock is sold for cash above par value. 10. Dividends are received on stock investments Instructions Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity, or (d) a noncash investing and financing activity.

          Selected transactions of Ehrlich Company are listed below.
 1. Accounts payable are paid in cash.
 2. Land is sold for cash at book value
 3. A building is purchased for cash.
 4. Bonds payable are issued for cash at a discount
 5. Inventory is purchased for cash
 6. Equipment is purchased by signing a 3-year, 10% note payable.
 7. Cash dividends on common stock are declared and paid.
 8. 100 shares of XYZ stock are purchased for cash as an investment.
 9. Common stock is sold for cash above par value.
 10. Dividends are received on stock investments
Instructions
Classify each transaction as either (a) an operating activity, (b) an investing activity, (c) a financing activity, or (d) a noncash investing and financing activity.

Added by Lindsey C.

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