Problem I.
Tabiona Company had the following transactions during the year.
a.
Received P15,000 cash payment on accounts receivable.
b.
Sold land for P60,000.
c.
Paid P25,000 of its accounts payable
d.
Sold (issued) 1,000 shares of common stock, P10 par, for P40 per share.
e.
Recorded depreciation expense of P25,000.
f.
Borrowed P85,000 from Green Bank and signed a note to repay in 12 months, with 10%
interest.
g.
Purchased equipment costing P40,000 by paying cash.
h.
Paid interest expense of P10,000.
i.
Received dividend revenue of P8,000.
For each of the above transactions, indicate:
1.
Whether it is a cash inflow, cash outflow, or noncash item, and
2.
Which category it would be reported under on a statement of cash flows: operating,
investing, or financing (assume Tabiona uses the direct method of preparing its statement
of cash flows).
Problem II.
You are provided with the following transactions that took place during a recent fiscal year.
