Answered: SERIES A EXERCISECLASSIFYING BUSINESS…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 30BE: Brief Exercise 2-30 Transaction Analysis Galle Inc. entered into the following transactions during...

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SERIES A EXERCISE
CLASSIFYING BUSINESS TRANSACTIONS Dolores Lopez opened a new
consulting business. The following transactions occurred during
January of the current year. Classify each transaction as an operating, an

investing, or a financing activity.
(a) Invested cash in the business, 510,000.
(b) Paid office rent, $500.

(c) Purchased office equipment. Paid $1,500 cash and agreed to pay the
balance of $2,000 in four monthly installments.
(d) Received cash for services rendered, $900.
(e) Paid phone bill, $65.

(f) Made payment on loan in transaction (c), $500.
(g) Paid wages to part-time employee, $500.
(h) Received cash for services rendered, $800.

(i) Paid electricity bill, $85.
(j) Withdrew cash for personal use, $100.
(k) Paid wages to part-time employee, $500.

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