Question

Falcon Incorporated has the following transactions with Wildcat Corporation.
Transactions
1. Falcon purchases common stock of Wildcat.
2. Falcon borrows from Wildcat by signing a note.
3. Wildcat pays dividends to Falcon.
4. Falcon provides services to Wildcat.
5. Falcon pays interest to Wildcat on borrowing.
Falcon’s Related Account
Investment
Notes payable
Dividend revenue
Service revenue
Interest expense

Required:
1. For each transaction, indicate whether Falcon would classify the related account as an (a) asset, (b) liability, or (c) stockholders’ equity to be reported in the balance sheet; a (d) revenue or (e) expense to be reported in the income statement; or an (f) dividend to be reported in the statement of stockholders’ equity.
2. Classify the type of activity as financing, investing, or operating.



$1.99
Sales0
Views225
Comments0
  • CreatedJuly 15, 2014
  • Files Included
Post your question
5000