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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.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 6A, Problem 1SEA
Textbook Problem

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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