After finishing her first year of operations, Nicole used the debt-to-assets, asset turnover, and net profit margin
Question:
a. Customers used $200 of gift certificates to pay for spa services.
b. Acquired, on account, equipment costing $320.
c. Recorded spa treatment revenues of $1,500 on account.
d. Incurred advertising expense of $40, paid in cash.
e. Accrued $750 for utility bills.
f. Received $50,000 cash from an investor in exchange for company shares.
g. Received $2,500 cash by signing a short-term note payable.
h. Recorded $1,800 in depreciation expense.
Required:
1. Complete the following table, indicating the effects (account, amount, and direction) of each transaction. Use + for increase, - for decrease, and NE for no effect.
2. Complete the following table, indicating the sign (+ for increase, - for decrease, and NE for no effect) for each transaction. Assume that, prior to recording items ( a )-( h ), Nicole's Getaway Spa had more assets than liabilities, more revenues than net income, and more revenues than average assets.
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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