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Selected transactions of Eller Company are listed below.
a. Increase in accounts receivable.
b. Depreciation.
c. Receipt of dividends on investment in stock.
d. Land is sold for cash at book value.
e. Purchase of treasury stock.
f. Equipment is purchased by signing a 3-year, 10% note payable.
g. Cash dividends on common stock are declared and paid.
h. 100 shares of Xerox common stock are purchased for cash.
i. Decrease in inventory.
j. Bonds payable are converted into common stock.
k. Increase in accounts payable.
l. Issued common stock for cash above par value.
INSTRUCTIONS
Classify each transaction as either a(n)operating activity, investing activity, financing activity, or
non-cash investing and financing activity by placing in X in the appropriate column on the
answer sheet.
Solution
Transactions Classification a Increase in accounts receivable. Operating b Depreciation. Non
Cash (Operating) c Receipt of dividends on investment in stock. Investing d Land is sold for cash
at book value. Investing e Purchase of treasury stock. Investing f Equipment is purchased by
signing a 3-year, 10% note payable. Non Cash (Investing) g Cash dividends on common stock
are declared and paid. Financing h 100 shares of Xerox common stock are purchased for cash.
Investing i Decrease in inventory. Operating j Bonds payable are converted into common stock.
Non Cash (Financing) k Increase in accounts payable. Operating l Issued common stock for cash
above par value. Financing

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Selected transactions of Eller Company are listed below- a- Increase.docx

  • 1. Selected transactions of Eller Company are listed below. a. Increase in accounts receivable. b. Depreciation. c. Receipt of dividends on investment in stock. d. Land is sold for cash at book value. e. Purchase of treasury stock. f. Equipment is purchased by signing a 3-year, 10% note payable. g. Cash dividends on common stock are declared and paid. h. 100 shares of Xerox common stock are purchased for cash. i. Decrease in inventory. j. Bonds payable are converted into common stock. k. Increase in accounts payable. l. Issued common stock for cash above par value. INSTRUCTIONS Classify each transaction as either a(n)operating activity, investing activity, financing activity, or non-cash investing and financing activity by placing in X in the appropriate column on the answer sheet. Solution Transactions Classification a Increase in accounts receivable. Operating b Depreciation. Non Cash (Operating) c Receipt of dividends on investment in stock. Investing d Land is sold for cash
  • 2. at book value. Investing e Purchase of treasury stock. Investing f Equipment is purchased by signing a 3-year, 10% note payable. Non Cash (Investing) g Cash dividends on common stock are declared and paid. Financing h 100 shares of Xerox common stock are purchased for cash. Investing i Decrease in inventory. Operating j Bonds payable are converted into common stock. Non Cash (Financing) k Increase in accounts payable. Operating l Issued common stock for cash above par value. Financing