Ron Smith opens an apartment-locator business near a college campus. The company will be named Campus Apartment

Question:

Ron Smith opens an apartment-locator business near a college campus. The company will be named Campus Apartment Locators. During the first month of operations, July 2024, the business completes the following transactions:
a. Receives a $35,000 contribution from Ron Smith and issues common stock to Ron Smith.
b. Purchases $350 of office supplies on account.
c. Pays cash of $30,000 to acquire a lot next to campus.
d. Locates apartments for clients and receives cash of $1,900.
e. Pays $100 on the accounts payable the business created in Transaction (b).
f. Pays cash expenses for office rent, $400, and utilities, $100.
g. Pays cash dividends of $1,200 to stockholders.

Requirements
1. Analyze the preceding transactions in terms of their effects on the accounting
equation of Campus Apartment Locators. Use Exhibit F:1-6 as a guide. 

F:1-6 Exhibit

image text in transcribed2. Prepare the income statement, statement of retained earnings, balance sheet, and statement
of cash flows of the business after recording the transactions.
3. Calculate the return on assets (ROA).

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Related Book For  book-img-for-question

Horngrens Financial And Managerial Accounting The Financial Chapters

ISBN: 9781292412320

7th Global Edition

Authors: Tracie Miller-Nobles, Brenda Mattison, Ella Mae Matsumura

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