Dolores Lopez opened a new consulting business. The following transactions occurred during January of the current year. Classify each transaction as an operating, an investing, or a financing activity. (a) Invested cash in the business, $10,000. (b) Paid office rent, $500. (c) Purchased office equipment. Paid $1,500 cash and agreed to pay the balance of $2,000 in four monthly installments.

Chapter 6, Appendix Exercises #1

Dolores Lopez opened a new consulting business. The following transactions occurred during January of the current year. Classify each transaction as an operating, an investing, or a financing activity.

(a) Invested cash in the business, $10,000.

(b) Paid office rent, $500.

(c) Purchased office equipment. Paid $1,500 cash and agreed to pay the balance of $2,000 in four monthly installments.

(d) Received cash for services rendered, $900.

(e) Paid telephone bill, $65.

(f) Made payment on loan in transaction (c), $500.

(g) Paid wages to part-timse employee, $500.

(h) Received cash for services rendered, $800.

(i) Paid electricity bill, $85.

(j) Withdrew cash for personal use, $100.

(k) Paid wages to part-time employee, $500.

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