Question

TIUUIMTE P17-1B You are provided with the following transactions that took place during a recent fiscal year: (a) Classification Transaction 1. Paid telephone bill for the month. 2. Sold land for cash, at a gain. 3. Acquired land by issuing common shares. 4. Paid a cash dividend to preferred shareholders. 5. Performed services for cash. 6. Performed services on account. 7. Purchased inventory for cash. 8. Purchased inventory on account. 9. Paid income tax. 10. Made principal repayment on a trade note payable. 11. Paid semi-annual bond interest. 5 000 12. Received rent from a tenant in advance. 13. Recorded depreciation expense. 14. Reacquired common shares at a price greater than the average cost of the shares. 15. Issued preferred shares for cash. 16. Collected cash from customers on account. 17. Issued a note payable. 18. Paid insurance for the month. Instructions Assuming the company is reporting under IFRS, complete the above table for each of the com assuming none of the transactions were previously accrued. The first one has been done iu (a) Classify each transaction as an operating activity (O), an investing activity (1), a fin noncash transaction (NC) on the cash flow statement. If there is choice in how a indicate the alternative classifications. of the following requireme one for you as an example "g activity (F), or wa transaction is classi

omit transaction#14; ignore reference to IFRS

Answer 1

	Sl No.	Transaction					(a)	(b)
	1	Paid telephone bill for the month					O	-
	2	Sold land for cash,at a gain					I	+
	3	Acquired land by issuing common shares					NC	NE
	4	Paid a cash dividend to preferred shareholders					F	-
	5	Performed services for cash					O	+
	6	Performed services on account					NC	NE
	7	Purchased inventory for cash					O	-
	8	Purchased inventory on account					NC	NE
	9	Paid income tax					O	-
	10	Made principal repayment on a trade note payable					F	-
	11	Paid semi-annual bond interest					O	-
	12	Received rent from a tenant in advance					O	+
	13	Recorded depreciation expense					NC-Direct method of cash flow statement	NE
							O-Indirect method of cash flow statement (add back to net income)	NE
	15	Issued preferred shares for cash					F	+
	16	Collected cash from customers on account					O	+
	17	Issued a note payable					F	+
	18	Paid insurance for the month					O	-