The transactions in this problem are identical to those in E1–2, but now with a focus on Wildcat. Transactions Wildcat’s Related Account1. Wildcat issues common stock of Falcon. Common stock2. Wildcat lends to Falcon by accepting a note. Notes receivable3. Wildcat receives services from Falcon. Service fee expense4. Wildcat receives interest from Falcon on lending. Interest revenueRequired:1. For each transaction, indicate whether Wildcat would report the related account in the balance sheet or income statement.2. For accounts in the balance sheet, indicate whether it would be classified as an asset, liability, or stockholders’ equity. For accounts in the income statement, indicate whether it would be classified as a revenue or an expense.3. Indicate whether each transaction is classified as operating, investing, or financing activity.

The transactions in this problem are identical to those in E1–2, but now with a focus on Wildcat. Transactions Wildcat’s Related Account1. Wildcat issues common stock of Falcon. Common stock2. Wildcat lends to Falcon by accepting a note. Notes receivable3. Wildcat receives services from Falcon. Service fee expense4. Wildcat receives interest from Falcon on lending. Interest revenueRequired:1. For each transaction, indicate whether Wildcat would report the related account in the balance sheet or income statement.2. For accounts in the balance sheet, indicate whether it would be classified as an asset, liability, or stockholders’ equity. For accounts in the income statement, indicate whether it would be classified as a revenue or an expense.3. Indicate whether each transaction is classified as operating, investing, or financing activity.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter2: Analyzing Transactions Into Debit And Credit Parts

Section2.1: Using T Accounts

Problem 1OYO

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