(Solution) - Below are a number of transactions that took place in -(2025 Original AI-Free Solution)

Paper Details

Below are a number of transactions that took place in Seneca Company during the past year:
Common stock was sold for cash.
Interest was paid on a note, decreasing Interest Payable.
Bonds were retired.
A long-term loan was made to a subsidiary.
Interest was received on the loan in (d) above, reducing Interest Receivable.
A stock dividend was declared and issued on common stock.
A building was acquired by issuing shares of common stock.
Equipment was sold for cash.
Short-term investments were sold.
Cash dividends were declared and paid.
Preferred stock was converted into common stock.
Deferred Income Taxes, a long-term liability, was reduced.
Dividends were received on stock of another company held as an investment.
Equipment was purchased by giving a long-term note to the seller.
Required:
Prepare an answer sheet with the following column headings:

Enter the letter of the transaction in the left column and indicate whether the transaction would be a source, use, or neither. Then place an X in the appropriate column to show the proper classification of the transaction on the statement of cash flows, or to show if it would be reported in a separate schedule or not reported on the statement atall.