SERIES A EXERCISECLASSIFYING BUSINESS TRANSACTIONS Dolores Lopez opened a newconsulting business. The following transactions occurred duringJanuary 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 thebalance 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.
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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