Assume that you recently obtained a part-time accounting position at the corporate headquarters of Elizabeth Arden in Miami Lakes, Florida. Elizabeth Arden is a leading marketer and manufacturer of prestige beauty products, prominently led by the Red Door line of
Assume that you recently obtained a part-time accounting position at the corporate headquarters of Elizabeth Arden in Miami Lakes, Florida. Elizabeth Arden is a leading marketer and manufacturer of prestige beauty products, prominently led by the Red Door line of fragrances. The following table summarizes accounts and their balances (in thousands) reported by Elizabeth Arden in a recent September 30 balance sheet.
Determine how the balance sheet of Elizabeth Arden would change if the company were to enter into the following transactions (amounts in thousands) during October:
Oct. 2 Purchase an additional manufacturing facility at a cost of $17,000 by signing a note that becomes payable in three years.
Oct. 10 Use $4,000 cash to repay one of the short-term loans.
Oct. 21 Receive an additional $10,000 cash from investors (corporate owners).
Oct. 28 Use cash to buy land for $5,000.
Elizabeth Arden's controller has asked you to create a spreadsheet in which to display:
1. The account balances at September 30.
2. The effects of the four October transactions.
3. Totals that combine the September 30 balances with the October transactions. You think you might be ready to tackle this assignment, but just to be sure, you e-mail your friend Owen for advice. Here's his reply.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Cash Accounts Receivable Inventories Other Current Assets Property and Equipment Other Noncurrent Assets 14,300 Short Term Notes Payable 285,400 Accounts Payable 99,700 Other Current Liabilities 1,600 Long-Term Debt 5,800 Other Long Term Liabilities 224,100 "Owners" Capital $125,000 111,800 75,700 323,600 10,100 144,700
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