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Carter Company had the following transactions throughout the



                                                                                             Inflow/                 Operating/                         

                                                                                           Outflow/               Investing/                                          

                                                                                           Adjust (+/-)                          Financing            Amount              

               Activity                                                                 N/A                                   or N/A                   Recorded           


1             Paid $90,000 of salaries in cash                                                                                                               


2             Issued $100,000 of bonds for cash                                                                                                                        


3             Issued $50,000 of stock in exchange                                                                                                    

                  for equipment                                                                                                                             


4             Obtained a $300,000, 5% loan from                                                                                                      

                  the bank                                                                                                                         


5             Received a $5,000 dividend from                                                                                                                         

                 investment in XYZ Company                                                                                                                   


6             Purchased $22,000 of the securities                                                                                                     

                  of Yolo Company                                                                                                                         


7             Purchased a $70,000 building for cash                                                                                                 


8             Paid $15,000 of interest on the note                                                                                                                    


9             Purchased $3,200 of inventory for cash.                                                                                            


10          Paid a $10,000 dividend to shareholders                                                                                                            


11          Repaid $100,000 of the principal balance                                                                                                           

                 of the loan                                                                                                                      


12          Made $350,000 sales in cash and                                                                                                                           

                $180,000 of sales on account                                                                                                                    


13          Purchased a $250,000 building by                                                                                                          

               paying $50,000 in cash and issuing

               a note for the rest                                                                                                                          


14          Sold a building with a book value of                                                                                                     


                $80,000 for $75,000 cash.                                                                                                                        


15          Sold $5,000 of the shares of Yolo                                                                                                                           


  Company for $4,500.                                                                                                               

1.     Complete the chart above by determining whether each transaction is a cash inflow/outflow/or N/A (did not impact cash), what type of activity it is (Operating, Investing, Financing or N/A) and how much, if any, we should recognize in the Statement of Cash Flows. If a transaction requires two entries on the SCF, identify the amount we should recognize under each section and whether it was an inflow, outflow, positive adjustment or negative adjustment. Assume we are using the indirect method).

2.     For items 12, 13, 14 and 15 ONLY, prepare either Journal Entries or show the transactions on a Financial Statements Effects Template.


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