Selected Transactions for the Eldon Company Are Listed Below

question 165

Essay

Selected transactions for the Eldon Company are listed below.
1. Collected accounts receivable.
2. Declared and paid dividends on common stock.
3. Sold long-term investments for cash.
4. Issued stock for equipment.
5. Repaid five year note payable.
6. Paid employee wages.
7. Converted bonds payable to common stock.
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.

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Definitions:

Face Values

The nominal value or original amount stated on a financial instrument, such as a bond or a stock certificate.

Journal Entries

The basic means of recording financial transactions in the accounting system, consisting of debits and credits to various accounts.

Market Rate

The prevailing interest rate available in the marketplace for investments or loans of similar risk and maturity.

Contract Rate

The agreed upon rate in a financial contract, such as the interest rate on a loan or bond.