Selected Transactions of the Carolina Company Are Listed Below

question 135

Essay

Selected transactions of the Carolina Company are listed below.
1. Common stock is sold for cash above par value.
2. Bonds payable are issued for cash at a discount.
3. Interest on a short-term note receivable is collected.
4. Merchandise is sold to customers for cash.
5. Cash is paid to purchase inventory.
6. Equipment is purchased by signing a 3-year, 10% note payable.
7. Cash dividends on common stock are declared and paid.
8. One hundred shares of Amazon.com common stock are purchased for cash.
9. Land is sold for cash at book value.
10. Bonds payable are converted into common stock.
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:

Unbiased Perception

The ability to perceive information and situations without allowing personal feelings, prejudices, or interpretations to influence judgment.

Self-actualizers

Individuals who have fulfilled their potential or are in the process of doing so, often characterized by high levels of creativity, autonomy, and a deeper understanding of reality.

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Self-actualizers' Imperfections

The acknowledgment that individuals striving for self-actualization can possess flaws and limitations despite their pursuit of personal growth.