Classify each transaction as an operating, investing, or financing activity. Assume all transactions are for cash.
1. Jackie Benefield makes a contribution of $95,000 to start the Horse Trails & Stables from her personal funds in exchange for common stock.
2. The company purchases three horses and some equipment for $25,000 in cash.
3. The company purchases $5,000 worth of advertising with the local newspaper.
4. The company pays rent of $15,000 for barn and pasture space as well as use of 50 acres of land for riding trails.
5. The company hires several people to clean stables at a cost of $600 for the month.
6. The first customers pay Horse Trails & Stables $4,225 for six months’ worth of riding lessons.