Presented below is a list of accounting events for the Longo Corporation. Classi

Question

Presented below is a list of accounting events for the Longo Corporation. Classify each of the events as an operating activity event, an investing activity event, a financing activity event, or as none-of-the-above. Sale of common stock for cash Collection of cash on accounts receivable Purchase of equipment for cash Sale of inventory on credit Borrowed cash from a bank Payment of a cash dividend Payment of utility expense using cash Purchase of land using bank financing Repurchase of previously issued stock using cash Cash payment of interest on a bank loan Presented below is a list of accounting events for the Longo Corporation. Classify each of the events as an operating activity event, an investing activity event, a financing activity event, or as none-of-the-above. Sale of common stock for cash Collection of cash on accounts receivable Purchase of equipment for cash Sale of inventory on credit Borrowed cash from a bank Payment of a cash dividend Payment of utility expense using cash Purchase of land using bank financing Repurchase of previously issued stock using cash Cash payment of interest on a bank loan

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Solution:

List of accounting events for the Longo Corporation:

Sale of common stock for cash Financing Activity Collection of cash on accounts receivable Operating Activity Purchase of equipment for cash Investing Activity Sale of inventory on credit None-of-the-above Borrowed cash from a bank Financing Activity Payment of a cash dividend Financing Activity Payment of utility expense using cash Operating Activity Purchase of land using bank financing None-of-the-above Repurchase of previously issued stock using cash Financing Activity Cash payment of interest on a bank loan Operating Activity

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