Selected Transactions of Horner Inc

question 27

Short Answer

Selected transactions of Horner Inc. are listed below.
1. Common shares are sold for cash.
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 , 5% note payable.
7. Cash dividends on common shares are declared and paid.
8. One hundred XYZ common shares are purchased for cash.
9. Land is sold for cash at book value.
10. Recorded an increase in the market value of available-for-sale securities
Classify each transaction as either A - an operating activity, B - an investing activity, C - a financing activity, orD - a noncash investing and financing activity .

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Definitions:

Value Their Time

The concept referring to how individuals assign worth to the time they allocate to various activities, based on their personal priorities and economic opportunities.

Business Executives

Individuals who hold senior positions within a company, responsible for making strategic decisions to guide the organization's direction and financial success.

Retired Persons

Individuals who have ended their professional career or working life and are often eligible for certain benefits like pensions.

Opportunity Cost

The financial impact of rejecting the most viable alternative during a decision process.