Classify the type of activity as financing and investing

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Reference no: EM131519298

Question: Falcon Incorporated has the following transactions with Wildcat Corporation.

Transactions Falcon's Related Account

1. Falcon purchases common stock of Wildcat. Investment

2. Falcon borrows from Wildcat by signing a note. Notes payable

3. Wildcat pays dividends to Falcon. Dividend revenue

4. Falcon provides services to Wildcat. Service revenue

5. Falcon pays interest to Wildcat on borrowing. Interest expense

Required: 1. For each transaction, indicate whether Falcon would classify the related account as an

(a) asset,

(b) liability, or

(d) revenue or

(e) expense to be reported in the income statement; or an

(f) dividend to be reported in the statement of stockholders' equity.

2. Classify the type of activity as financing, investing, or operating.

Reference no: EM131519298

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