Question: For each of the transactions in E1 16A tell whether the

For each of the transactions in E1-16A, tell whether the transaction was an operating, investing, or financing activity.
In E1-16A, 1. John contributed $16,500 of personal savings in exchange for common stock to start the business.
2. The company purchased $7,500 of inventory (plants and shrubs) from a gardening wholesaler in Kansas.
3. The company purchased three riding lawn mowers at a cost of $5,000 each.
4. The company paid rent expense of $500 the first month.
5. The company earned service revenue of $9,000 and sold the entire $7,500 of inventory it had purchased to customers for $13,250 cash.

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  • CreatedSeptember 01, 2014
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