Question: Cookies Pastries Inc started business on July 1 2010
Cookies & Pastries, Inc., started business on July 1, 2010, with a $16,000 cash contribution from its owners in exchange for common stock. The company used $7,500 of the cash for equipment for the new shop and $3,500 for cookies and pastries for its inventory. During the month, the company earned $7,000 cash revenue from the sale of the entire inventory. On July 31, 2010, the owners spent $5,000 for more cookies and pastries for the inventory. What is the balance in retained earnings on July 31, 2010? How much cash does the company have on hand on July 31, 2010? Use the accounting equation to help answer the questions.
Answer to relevant QuestionsFor E1-43B, what amounts would Cookies & Pastries, Inc., show on its statement of cash flows for the month ended July 31, 2010? Classify each as an operating, investing, or financing activity.For E1-43B, Cookies & Pastries, ...What will be the effects (increase, decrease, or no effect) on total assets, total liabilities, and total stockholders’ equity in each of the following situations? When shareholders’ equity changes, note whether it is ...What will be the effects (increase, decrease, or no effect) on total assets, total liabilities, and total shareholders’ equity in each of the following situations? When shareholders’ equity changes, note whether it is ...Explain materiality and give an example of both a material and an immaterial item.Multiple Choice Questions1. If revenue exceeds expenses for a given period,a. Total assets for the period will decrease.b. Cash for the period will increase.c. The income statement will report net income.d. Liabilities for ...
Post your question