Exercise 1-2A Identify account classifications and business activities (LO1-2) Falcon Incorporated has the following transactions with Wildcat Corporation. Required: 1., 2., & 3. For each transaction, indicate whether Falcon would report the related account in the balance sheet or income statement. For accounts in the balance sheet, indicate whether it would be classified as an asset, liability, or stockholders' equity. For accounts in the income statement, indicate whether it would be classified as a revenue or an expense. Indicate whether each transaction is classified as operating, investing, or financing activity. Transactions 1. Falcon purchases common stock of Wildcat 2. Falcon borrows from Wildcat by signing a note. 3. Falcon provides services to Wildcat. 4. Falcon pays interest to Wildcat on borrowing Falcon's Related Account Investment Financial Statement Account Activity Notes payable Service revenue Interest expense