Listed below are eight transactions. In each case, identify whether the transaction is an example of financing,

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Listed below are eight transactions. In each case, identify whether the transaction is an example of financing, investing, or operating activities and which of the financial statements it would affect.

1. Common stock is issued for $500,000 in each.

2. Twenty units of inventory are sold for $50 each.

3. Employee wages are paid.

4. A new warehouse facility is purchased.

5. Principal payments on outstanding debt are paid.

6. Dividends are paid to the shareholders.

7. A 4-year-old vehicle, used as a delivery truck, is sold for $9,000, its book value.

8. A utility bill for March is paid in April.


Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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