Question: Identify the transactions from the following story For each identify

Identify the transactions from the following story. For each, identify the transaction as operating, investing, or financing.
Latasha Jones decided to go into business for herself. As a talented Web designer, she decided to open a small consulting firm with $5,000 of her own money, for which she received common stock. Latasha borrowed $500 from her best friend to help get the business started, and in exchange she gave her friend an I-owe-you (IOU). The company bought a state-of-the-art desktop computer, complete with the accessories and software needed to get the business off the ground, at a total cost of $6,000. The business required a separate phone line, which cost $450.
Then, the company put an advertisement in the local newspaper, at a cost of $45 per month for weekly ads. The company was ready to go. All of the payments were cash.


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  • CreatedSeptember 01, 2014
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