Classify each of the transactions in E1-19A as an operating, investing, or financing activity.
In E1-19A, 1. Tommy started the pub by contributing $17,000 in exchange for common stock, and the business borrowed $12,750 from the bank.
2. The pub purchased $4,000 worth of beer and other items (its inventory) with cash.
3. The pub hired a bartender to assist Tommy and help run the new company. For this service, the pub paid $100 each day for 30 days.
4. The pub was popular with the local college and sold half of its inventory for total cash revenues of $8,500.
5. The pub paid rent expense of $725 the first month.
6. The pub repaid $1,500 of the bank loan along with $50 of interest for the first month.