Ask Question
BusinessBusiness
25 March, 09:02

Tabares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity. (a) Issued $50,000 par value common stock for cash. select a type of activity (b) Purchased a machine for $30,000, giving a long-term note in exchange. select a type of activity (c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000. select a type of activity (d) Declared and paid a cash dividend of $18,000. select a type of activity (e) Sold a long-term investment with a cost of $15,000 for $15,000 cash. select a type of activity (f) Collected $16,000 from sale of goods. select a type of activity (g) Paid $18,000 to suppliers.

+4
Answers (1)
  1. 25 March, 12:26
    0
    Answer and Explanation:

    As per the data given in the question, the classification of the transactions are as follows

    a) Issued $50,000 par value common stock for cash = it is a financing activity as it increased the common stock and cash which shows in the financing activity

    b) Purchased a machine for $30,000, It is a Non cash investing giving a long-term note in exchange and financing activity. As it does not include any cash transactions

    c) Issued $200,000 par value common stock upon conversion of bonds having. It is a Non cash investing a face value of $200,000 and financing activity as it does not involve any cash transactions

    d) Declared and paid a cash dividend of $18,000 = It is a financing activity as the dividend is deducted from the statement of stockholder equity

    e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = It is an Investing activity as there is a sale of long term investment, the same is recorded in the investing activity in a positive sign because it is an outflow of cash

    f) Collected $16,000 from sale of goods. It is an operating activity as cash is collected so the same is come under the operating activity

    g) Paid $18,000 to suppliers. This transaction comes under the operating activity in a negative sign
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Tabares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing activity, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Reduced order cycle time has become an important part of supply chain management since it can lead to lower inventory levels for customers, improved cash flow, lower current assets and accounts receivable. True/False
Answers (1)
True or false: the market for wheat does exhibit the two primary characteristics that define perfectly competitive markets.
Answers (1)
Casa Del Sol Property Development Company is refurbishing a 200-unit condominium complex at a cost of $1,875,000. It expects that this will lead to expected annual cash flows of $415,350 for the next seven years.
Answers (1)
Which process turn economic resources into goods and services? Distribution. Marketing. Promotion. Production
Answers (1)
Match the benefit with its detailed explanation
Answers (1)
New Questions in Business
ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $1 million when it sustained a $40,000 loss.
Answers (1)
Which of the following are true? Select one or more: (a) The t-distribution is dependent on the sample size. (b) The t-distribution does not depend on the sample size.
Answers (1)
Santoyo Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: Hours Wait time 13.6 Process time 2.7 Inspection time 0.3 Move time 3.3 Queue time 7.0 The delivery cycle time was:
Answers (1)
During 2021, its first year of operations, Pave Construction provides services on account of $160,000. By the end of 2021, cash collections on these accounts total $110,000. Pave estimates that 25% of the uncollected accounts will be uncollectible.
Answers (1)
How often is interest earned from bonds usually paid to the bond holder? 1) Every month 2) Once per year 3) Twice per year 4) Every two years
Answers (1)
Home » Business » Tabares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.
Sign Up Forgot Password?