What kind of activity is described by each of the events of the transactions below? (a) Trude
Question:
What kind of activity is described by each of the events of the transactions below?
(a) Trude Co. buys a piece of equipment for
$40,000. [operating / investing / financing]
(b) Trude Co. borrows $50,000 from a bank, signing a long-term note payable.
[operating / investing / financing]
(c) Trude Co. pays $20,000 of its outstanding accounts payable. [operating / investing /
financing]
(d) May Corp. arranges $10,000 in new shortterm borrowings from the bank. [operating /
investing / financing]
(e) May Corp. issues 1,000 of its common stock for $10 per share. [operating / investing /
financing]
(f) May Corp. sells one of the buildings it used for operations for $500,000. [operating /
investing / financing]
(g) May Corp. receives interest revenue on invested funds. [operating / investing /
financing]
(h) May Corp. pays dividends to its investors.
[operating / investing / financing]
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