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:

Reflex

An automatic and involuntary response to a specific stimulus without conscious thought.

Sensory Stimulus

Any object or event that is perceived by the senses, producing a response in the sensory organs and nervous system.

Zygote

The initial cell formed when two gamete cells are joined by means of sexual reproduction, marking the beginning of a new organism's development.

Fertilized Egg

A cell that results from the union of a sperm cell with an egg cell, marking the beginning of a new organism's development.