Below are some independent hypothetical situations. 1. A company pays its shareholders a $90 000 cash dividend.

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Below are some independent hypothetical situations.
1. A company pays its shareholders a $90 000 cash dividend.
2. A company borrows $25 000 from the local bank and signs a six-month note for the loan.
3. A company purchases 500 ordinary shares of Woolworths Limited for $15 000.
4. A company purchases a block of land for $400000 cash. An appraiser for the buyer valued the land at $425 000.
5. A company buys three fax machines for office use, for which it signs a note promising to pay $1500 within six months.

6. A company signs a lease agreement for a warehouse; the rent is $15 000 per month. Upon signing the document, the retailer pays $45 000 to the owner of the building (assume no security deposit).
7. A company purchases a new delivery truck for $63 000 cash that has a list price of $69 000.
8. A company acquires a patent on a new digital technology, paying $300000 cash and signing a $600 000 note payable due in two years.
Indicate the appropriate account titles, if any, affected by each of the events described above. Answer in terms of changes in account balances (increase/decrease). Include the dollar amount.

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Financial Accounting An Integrated Approach

ISBN: 9780170349680

6th Edition

Authors: Ken Trotman, Michael Gibbins, Elizabeth Carson

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