Question: For Entity A, classify each transaction as either an operating activity OA, an investing activity IA, or a financing activity FA, or a noncash investing
For Entity A, classify each transaction as either an operating activity OA, an investing activity IA, or a financing activity FA, or a noncash investing and financing activity NC.
Selected transactions for Entity A are listed below.
1. Cash received from issuing Entity A common stock to investors.
2. Cash paid for merchandise inventory for resale.
3. Cash collections from customers.
4. Cash paid for land to construct a warehouse used in the business.
5. Cash paid to stockholders as dividends on common stock.
6. Acquisition of equipment by issuing a long-term note payable to the seller.
7. Interest paid on a long-term note payable.
8. Exchange of a patent for a building.
9. Payoff of bonds payable at maturity.
10. Sale of Ford common stock held as a long-term investment.
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