Arnett Company was started in 2016 when it acquired $30,000 cash by issuing common stock to Dan

Question:

Arnett Company was started in 2016 when it acquired $30,000 cash by issuing to Dan Arnett.
Required
a. Was this event an asset source, use, or exchange transaction for Arnett Company?
b. Was this event an asset source, use, or exchange transaction for Dan Arnett?
c. Was the cash flow an operating, investing, or financing activity on Arnett Company’s 2016 statement of cash flows?
d. Was the cash flow an operating, investing, or financing activity on Dan Arnett’s 2016 statement of cash flows?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...