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Bill and Steve recently formed a company that manufactures andsells high-end kitchen appliances. The following are a list ofactivities that occurred during the year. a. Bill and Steve each contributed

Bill and Steve recently formed a company that manufactures andsells high-end kitchen appliances. The following are a list ofactivities that occurred during the year.
a. Bill and Steve each contributed cash in exchange for commonstock in the company.
b. Land and a building to be used as a factory to make theappliances were purchased for cash.
c. Machines used to make the appliances were purchased forcash.
d. Various materials used in the production of the appliances werepurchased for cash.
e. Three employees were paid cash to operate the machines and makethe appliances.
f. Running low on money, the company borrowed money from a localbank.
g. The money from the bank loan was used to buy advertising onlocal radio and television stations.
h. The company sold the appliances to local homeowners forcash.
i. Due to extremely high popularity of its products, Bill and Stevebuilt another factory building on its land for cash.
j. The company paid a cash dividend to Bill and Steve.

Required:
Classify each of the business activities listed as either anoperating activity (O), an investing activity (I), or a financingactivity (F).

 

May 22 2021 View more View Less

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