Question

Classyily Casil PIUWS Among the transactions of Marvel Manufacturing were the following. 1. Made payments on accounts payable to office suppliers. 2. Paid the principal amount of a mortgage to Seventh Bank. 3. Paid interest charges relating to a mortgage to Seventh Bank. 4. Issued preferred stock for cash; management plans to use this cash in the near future to purchase another company. 5. Paid salaries to employees in the finance department. 6. Collected an account receivable from a customer. 7. Transferred cash from the general bank account into a money market fund. 8. Used the cash received in 4, to purchase Moran Manufacturing Co. 9. Made a year-end adjusting entry to recognize amortization expense. 10. At year-end, purchased for cash an advertising spot on a local radio station for the next eight months

Answer 1

Made payments on accounts payable to office suppliers. Operating activity Paid the principal amount of a mortgage to Seventh Bank. Financing activity Paid interest charges relating to a mortgage to Seventh Bank Operating activity Issued preferred stock for cash; management plans to use this cash in the near future to purchase another company Financing activity Paid salaries to employees in the finance department. Operating activity Collected an account receivable from a customer. Operating activity Transferred cash from the general Not included in the statement of bank account into a money market cash flows. Money market fund is fund. equal to cash equivalent. Used the cash received in 4, to purchase Moran manufacturing Co. Investing activity Not included in the statement of Made a year-end adjusting entry to cash flowsprepared by the direct recognize amortization expense. method

At year-end, purchased for cash an advertising spot on a local radio station for the next eight months Operating activity Paid the annual dividend on preferred stock Financing activity Paid the semiannual interest on bonds payable. Operating activity Received a semiannual dividend from an investment in the common stock of another corporation. Operating activity Sold for cash investment in the commn stock of another corporation. Investing activity Not included in the statement of Received cash upon the maturity of cash flows. Transfer fund is equal an investment in cash equivalents. to cash equivalent. 20