Question 2: Which of the following events results in an accounting transaction for Clothing Ltd? State a reason if it is not an accounting transaction.

1.Clothing Ltd signed a contract to hire a new store manager for a salary of $150,000 per annum.The manager will start work next month.

2.The founder of Clothing Ltd., who is also a major shareholder, purchased additional stock in another company.

3.Clothing Ltd borrowed $230,000 from a local bank.

4.Clothing Ltd purchased a sewing machine, which it paid for by signing a note payable.

5.Clothing Ltd issued 10,000 shares to a private investor, who is also a car business owner, in return for a new delivery truck.

6.Two investors in Clothing Ltd sold their stock to another investor.

7.Clothing Ltd ordered some fabric to be delivered next week.

Clothing Ltd lent $250,000 to a member of the board of directors.