3. 4. Classifying Accounting Transactions Presented below is a list of accounting transactions for the Davis Company. Classify each of the transactions as an operating activity transaction, an investing activity transaction, a financing activity transaction, or as none-of-the-above. 1. Sale of preferred stock for cash 2. Prepaid the office rent for six months Cash payment of income tax expense Sale of land held as an investment for cash Declared (but did not pay) a cash dividend Purchased treasury stock using cash Purchase of machinery for cash Cash payment on loan principal 9. Collection of cash on outstanding accounts receivable 10. Payment of a stock dividend Financing activity 5. 6. 7. 8