Question

Kiley Corporation had these transactions during 2022. Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.

a. Purchased a machine for $30,000, giving a long-term note in exchange.
b. Issued $50,000 par value common stock for cash.
c. Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
d. Declared and paid a cash dividend of $13,000.

Answer 1

Answer:

A. Noncash investing and financing activities

B. Financing activities

C. Noncash investing and financing activities

D. Financing activities

Explanation:

To Analyze the transactions and indicate whether each transaction is AN OPERATING ACTIVITY, INVESTING ACTIVITY, FINANCING ACTIVITY, OR NONCASH INVESTING AND FINANCING ACTIVITY

A. Based on the information given the transaction is a NONCASH INVESTING AND FINANCING ACTIVITIES

B. Based on the information given the transaction is a FINANCING ACTIVITIES

C. Based on the information given the transaction is a NONCASH INVESTING AND FINANCING ACTIVITIES

D.Based on the information given the transaction is a FINANCING ACTIVITIES