For each of the events (a) though (e), perform transaction analysis and indicate the account, amount,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
For each of the events (a) though (e), perform transaction analysis and indicate the account, amount, and direction of the effects (+ for increase and for decrease) on the accounting equation. (a) The Firm issued 10,000 additional shares of common stock with a par value of $0.05 per share at a market value of $2 per share, receiving $20,000 in cash from investors. (b) The Firm purchased $3,500 of equipment, paying $400 in cash and owing the rest on accounts payable to the manufacturer. (c) The Firm borrowed $3,000 from its local bank, signing a note to be paid in five years. (d) The Firm's board of directors declared that the Firm will pay $2,500 in cash as dividends to shareholders next year. For each of the events (a) though (e), perform transaction analysis and indicate the account, amount, and direction of the effects (+ for increase and for decrease) on the accounting equation. (a) The Firm issued 10,000 additional shares of common stock with a par value of $0.05 per share at a market value of $2 per share, receiving $20,000 in cash from investors. (b) The Firm purchased $3,500 of equipment, paying $400 in cash and owing the rest on accounts payable to the manufacturer. (c) The Firm borrowed $3,000 from its local bank, signing a note to be paid in five years. (d) The Firm's board of directors declared that the Firm will pay $2,500 in cash as dividends to shareholders next year.
Expert Answer:
Answer rating: 100% (QA)
a Issuing additional shares of common stock would increase the equity of the company by 20000 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Indicate by letter whether each of the events listed below increases(I),decreases(D),or has no effect(N)on an employer's projected benefit obligation. Events _____1. Interest cost. _____2....
-
Indicate by letter whether each of the events listed below increases (I), decreases (D), or has no effect (N) on an employer's periodic pension expense in the year the event occurs. Events _____1....
-
For each of the following assets acquired by federal departments and agencies, indicate how the government should report the asset. If it is to be reported on the governments balance sheets, then...
-
Multiple Choice Questions 1. If a company has a $25,000 reduction in sales and an increase of $7,000 in fixed costs with a contribution margin ratio of 34 percent, by how much will net income change?...
-
Use the computer- based electronic audit documentation on the textbook website to perform a test of the computerized payroll processing program. The electronic audit documentation contains a simple...
-
When no force is applied to the brake pedal of the lightweight truck, the retainer spring AB keeps the pedal in contact with the smooth brake light switch at C. If the force on the switch is 3 N,...
-
Determine the vertical displacement of joint \(B\). Each A992 steel member has a cross-sectional area of \(4.5 \mathrm{in}^{2}\). A F E 8 ft B -8 ft 5 kip 6 ft
-
Athena Company has two divisions. Spartan Division, which has an investment base of $8,400,000, produces and sells 450,000 units of a product at a market price of $28 per unit. Its variable costs...
-
CBS Sunday Morning. (2018, January, 21). War over free speech on campus. Youtube. https://www.youtube.com/watch?v=jrjyZ7KJXL8Links to an external site. What are the rights of presenters who speak...
-
You own a firm, and you want to raise $30 million to fund an expansion. Currently, you own 100% of the firms equity, and the firm has no debt. To raise the $30 million solely through equity, you will...
-
9. given this, the consumer surplus will turn out to be demand and supply equation as follows: demand function: p = 190-30q supply function: p=40+20q O 125 O 135 O 140 O 150
-
The following data set will be used to learn a decision tree for predicting whether a mushroom is edible or not based on its shape, color, and odor. Shape C D D C D C C C D Color BB W W B B G U B W W...
-
What is the language for each of the NFA's pictured below? Write reg- ular expressions for each. 10. 11. 12. 13. 14. 15. a, b a a I a, b b a a, b a b a b b b + a a, b b O a + + + b a a, b Build FA's...
-
3. Consider the following formula 0 = ({c-)-/2 Write a complete Fortran program that evaluates 0. Roots involving imaginary number must be considered. Send suitable output to a file. Use comment...
-
1. Write the function Convw (vxn. Vyn, Lx, Ux, Ly, Uy) which computes Zn the convolution of two finite energy signals xn and yn. Lx(resp. Ly) is the starting index of xn (resp. yn) and Ux (resp. Uy)...
-
Generate the step response of a second order system for 10 seconds with a time step of 0.01 seconds with the following details: KDC2, Wn= = 10.66 rad sec -, and 3 = 0.187 2. Part B [1] Calculate the...
-
Generally accepted accounting principles require companies to use a specific format for financial statements. True or False
-
Assessing simultaneous changes in CVP relationships Braun Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Braun incurs $240,000 of fixed operating...
-
According to the life cycle model, people consume each year an amount that depends upon their lifetime income rather than upon their current income. Assume that you expect to receive future income...
-
No one likes to pay rent. Yet scarcities of land and urban housing often cause rents to soar in cities. In response to rising rents and hostility toward landlords, governments sometimes impose rent...
-
Consider the data in Table 7-8, which contains a situation similar to that in Table 7-5. a. Calculate the TC, VC, FC, AC, AVG, and MC. On a piece of graph paper, plot the AC and MC curves. b. Assume...
-
You have been assigned to audit the accounts payable of Slamtastic, a small recording company specializing in alternative music. Following is a portion of their accounts payable journal for the month...
-
Consider the data from the previous problem. For each of the sampling methods named: a. Compute the total amount of the transactions sampled and the proportion of the cumulative total the sample...
-
Suppose that an auditor chooses to use a random sampling technique to test additions to fixed assets for the fiscal year for manufacturing company. Walk through the key steps the auditor should...
Study smarter with the SolutionInn App