Below are the records of five transactions made by Roni Inc. during the year ended December...

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Below are the records of five transactions made by Roni Inc. during the year ended December 31, 2017. 2017 was Roni Inc.'s first year of operation. Accounts Cash Investments Notes Receivable Machine Notes payable Common Stock (100 shares) Additional paid-in capital Dollar Effect of Each of the Five Transactions 3 1 $20,000 (3,000) (17,000) 2 $(7,000) 7,000 S(4,000) 4,000 4 $(5,000) 5,000 Required: (1) Explain the nature of each of the five transactions above. Example for transaction (2): Roni Inc. acquired a machine for $7,000 in cash. 5 $2,000 (2,000) Ending Balance (2) Compute the ending balance of each account and prepare a classified balance sheet for Roni Inc. as of December 31, 2017. Below are the records of five transactions made by Roni Inc. during the year ended December 31, 2017. 2017 was Roni Inc.'s first year of operation. Accounts Cash Investments Notes Receivable Machine Notes payable Common Stock (100 shares) Additional paid-in capital Dollar Effect of Each of the Five Transactions 3 1 $20,000 (3,000) (17,000) 2 $(7,000) 7,000 S(4,000) 4,000 4 $(5,000) 5,000 Required: (1) Explain the nature of each of the five transactions above. Example for transaction (2): Roni Inc. acquired a machine for $7,000 in cash. 5 $2,000 (2,000) Ending Balance (2) Compute the ending balance of each account and prepare a classified balance sheet for Roni Inc. as of December 31, 2017.

Answer rating: 100% (QA)

Answer 1 Transaction 1 Roni Inc issued 100 30 par common stock for 20000 cas... View the full answer