Question

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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