14. Red Hot Chili Peppers Co. had the following activity in its most recent year of operations. Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method. Items (a) Purchase of equipment. select a kind of activity (b) Redemption of bonds payable. select a kind of activity (c) Sale of building. select a kind of activity (d) Depreciation. select a kind of activity (e) Exchange of equipment for furniture. select a kind of activity (f) Issuance of common stock. select a kind of activity (g) Amortization of intangible assets. select a kind of activity (h) Purchase of treasury stock. select a kind of activity (i) Issuance of bonds for land. select a kind of activity (j) Payment of dividends. select a kind of activity (k) Increase in interest receivable on notes receivable. select a kind of activity (l) Pension expense exceeds amount funded. select a kind of activity
14. Red Hot Chili Peppers Co. had the following activity in its most recent year of operations. Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method. Items (a) Purchase of equipment. select a kind of activity (b) Redemption of bonds payable. select a kind of activity (c) Sale of building. select a kind of activity (d) Depreciation. select a kind of activity (e) Exchange of equipment for furniture. select a kind of activity (f) Issuance of common stock. select a kind of activity (g) Amortization of intangible assets. select a kind of activity (h) Purchase of treasury stock. select a kind of activity (i) Issuance of bonds for land. select a kind of activity (j) Payment of dividends. select a kind of activity (k) Increase in interest receivable on notes receivable. select a kind of activity (l) Pension expense exceeds amount funded. select a kind of activity
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 2PB
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14.
Red Hot Chili Peppers Co. had the following activity in its most recent year of operations.
Classify the items as (1) operating—add to net income; (2) operating—deduct from net income; (3) investing; (4) financing; or (5) significant noncash investing and financing activities. Use the indirect method.
Items
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---|---|---|---|---|
(a)
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Purchase of equipment.
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select a kind of activity
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(b)
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Redemption of bonds payable.
|
select a kind of activity
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||
(c)
|
Sale of building.
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select a kind of activity
|
||
(d)
|
|
select a kind of activity
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||
(e)
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Exchange of equipment for furniture.
|
select a kind of activity
|
||
(f)
|
Issuance of common stock.
|
select a kind of activity
|
||
(g)
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Amortization of intangible assets.
|
select a kind of activity
|
||
(h)
|
Purchase of
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select a kind of activity
|
||
(i)
|
Issuance of bonds for land.
|
select a kind of activity
|
||
(j)
|
Payment of dividends.
|
select a kind of activity
|
||
(k)
|
Increase in interest receivable on notes receivable.
|
select a kind of activity
|
||
(l)
|
Pension expense exceeds amount funded.
|
select a kind of activity
|
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