Question: The following business scenarios are independent from one another 1

The following business scenarios are independent from one another:
1. Bob Wilder starts a business by transferring $10,000 from his personal checking account into a checking account for his business, Wilder Co.
2. A business that Sam Pace owns earns $4,600 of cash revenue.
3. Jim Sneed borrows $30,000 from the National Bank and uses the money to purchase a car from Iuka Ford.
4. OZ Company pays its five employees $2,500 each to cover their salaries.
5. Gil Roberts loans his son Jim $5,000 cash.
6. Gane, Inc., paid $100,000 cash to purchase land from Atlanta Land Co.
7. Rob Moore and Gil Thomas form a partnership by contributing $20,000 each from their personal bank accounts to a partnership bank account.
8. Stephen Woo pays cash to purchase $5,000 of common stock that is issued by Izzard, Inc.
9. Natural Stone pays a $5,000 cash dividend to each of its seven shareholders.
10. Billows, Inc., borrowed $5,000,000 from the National Bank.

a. For each scenario create a list of all of the entities that are mentioned in the description.
b. Describe what happens to the cash account of each entity that you identified in Requirement a.

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  • CreatedOctober 12, 2013
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