Not included on the statement of cash flows because

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Unformatted text preview: activity (for the mortgage payable) Financing activity (for the principal payment) Operating activity (for the interest payment) Operating activity Financing activity Operating activity E14–2 1. Not included on the statement of cash flows because it does not affect cash. As proof, the entry for this event would be: Allowance for Doubtful Accounts (+A) Accounts Receivable (–A) Wrote off uncollectible accounts. XX XX 2. Investing activity 3. Financing activity 4. Any gain or loss would be adjusted out of operating activities. The exchange of notes for the building would have no net impact on the statement of cash flows because it does not affect cash. As proof, the entry for this event would be: Notes Receivable (+A) Accumulated Depreciation: Building (+A) Building (–A) Sold a building in exchange for a five year note. 5. 7. XX XX Not included on the statement of cash flows because it does not affect cash. As proof, the entry for this event would be: Bonds Payable (–L) Common Stock (+SE) Retired bonds with common stock. E14–2 XX Not included on the statement of cash flows because it does not affect cash. As proof, the entry for this event would be: Dividend (–SE) Dividend Payable (+L) Declared a dividend. 6. XX XX Concluded Investing activity XX XX 8. Not included on the statement of cash flows because it does not affect cash. As proof, the entry for this event would be: Dividend (–SE) Common Stock (+SE) Additional Paid­in Capital, Common Stock (+SE) Declared and issued a stock dividend. 9. XX XX XX Not included on the statement of cash flows because it does not affect cash. As proof, the entry for this event would be: Depreciation Expense (E, –SE) Accumulated Depreciation (–A) Depreciated fixed assets. XX XX 10. Operating activity 11. Not included on the statement of cash flows because it does not affect cash. As proof, the entry for this event would be: Inventory (+A) Accounts Payable (+L) Purchased inventory on account. XX XX 12. Operating activity 13. Any gain or loss would b...
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