A friend who has established a new dance studio, Hip and Hop, has asked you to give some advice as to the contents of financial statements. Transactions of Hip Hop include:

(a)  contribution of cash by your friend to the business

(b)  purchase of studio sound equipment on credit

(c)  electricity costs paid

(d)  studio fees received in cash

(e)  the owner’s house

(f)  rental of a chilled water machine, paid in cash

(g)  money withdrawn by your friend to pay university fees for a friend

(h)  cash held by the business at the end of the year

(i)   money borrowed for purchase of building.

Required:

Indicate whether these items would appear in Hip and Hop’s balance sheet, income statement, statement of changes in equity and/or statement of cash flows. For those items included in the statement of cash flows, indicate whether the item relates to operating activities, investing activities, or financing activities.