Selected Transactions for the Eldon Company Are Listed Below

question 181

Essay

Selected transactions for the Eldon Company are listed below.
1. Collected accounts receivable.
2. Declared and paid dividends on ordinary shares.
3. Sold long-term investments for cash.
4. Issued ordinary shares for equipment.
5. Repaid five year note payable.
6. Paid employee wages.
7. Converted bonds payable to ordinary shares.
8. Acquired long-term investment with cash.
9. Sold buildings and equipment for cash.
10. Sold merchandise to customers.
Instructions
Classify each transaction as either (a) an operating activity, (b) an investing activity,
(c) a financing activity, or (d) a noncash investing and financing activity.

---

Definitions:

Double-Declining-Balance

A method of accelerated depreciation in which an asset's book value is reduced by twice the rate of straight-line depreciation.

Straight-Line Rate

The Straight-Line Rate refers to a method of calculating depreciation or amortization by evenly allocating the cost of an asset minus its salvage value over its useful life.

Depreciation Method

A systematic approach to allocating the cost of a tangible asset over its useful life.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, including balance sheet, income statement, and cash flow statement.