For this question, use Harrison's balance sheet, income statement, excerpts from the statement of cash flows...

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For this question, use Harrison's balance sheet, income statement, excerpts from the statement of cash flows and the additional information items that appear below. The required work for this question appears on the following page. N/A stands for "not available" (you need to calculate it by yourself). "N/A" does not equal 0. Assets Cash Harrison Inc Balance Sheet At December 31, 2010 Accounts Receivable Inventory Equipment, net Total Assets Liabilities Accounts Payable Notes Payable Unearned Revenues Total Liabilities Shareholders' Equity Contributed Capital Retained Earnings Total Equity Total Liabilities and equity 2,430 450 2,600 35,000 N/A 890 (A) 6,500 16,890 (B) 10,085 N/A N/A 2011 11,390 380 8,500 N/A N/A 950 (C) 8,500 N/A (E) (D) N/A N/A Harrison Inc Income Statement For the year 2010 Revenues Cost of sales Gross profit Wage expenses Other expenses Net income 2011 35,300 48,210 (25,200) (29,400) 10,100 18,810 (F) (4,580) (479) (3,500) 5,450 10,730 Harrison Inc Cash Flow Statement For the year 2010 Cash From Operations 4,500 Cash From Investing (3,000) Cash From Financing 2,000 2011 9,460 (3,500) 3,000 Additional information: 1. A positive amount in the statement of cash flows signifies a cash inflow; a negative amount signifies a cash outflow. 2. Cash from investing in 2010 and 2011 relates to the purchase of additional equipment. No other equipment was purchased or sold in 2010 and 2011. 3. Cash from financing in 2011 includes: (i) a cash outflow of dividend - $2,000, (ii) a cash inflow from issuance of new stock - $1,500, (iii) a cash inflow from receiving a loan in the form of a note payable - $3,500. The following events occurred for Taylor Corporation: a. Received investment of $17,000 cash by organizers and distributed 1,000 shares of $1 par value common stock to them. b. Purchased $4,000 of equipment, paying $500 in cash and signing a note for the rest. c. Borrowed $4,500 cash from a bank. d. Loaned $250 to an employee who signed a note. e. Purchased $7,500 of land; paid $2,000 in cash and signed a mortgage note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the following headings: Event Assets Liabilities + Stockholders' Equity For this question, use Harrison's balance sheet, income statement, excerpts from the statement of cash flows and the additional information items that appear below. The required work for this question appears on the following page. N/A stands for "not available" (you need to calculate it by yourself). "N/A" does not equal 0. Assets Cash Harrison Inc Balance Sheet At December 31, 2010 Accounts Receivable Inventory Equipment, net Total Assets Liabilities Accounts Payable Notes Payable Unearned Revenues Total Liabilities Shareholders' Equity Contributed Capital Retained Earnings Total Equity Total Liabilities and equity 2,430 450 2,600 35,000 N/A 890 (A) 6,500 16,890 (B) 10,085 N/A N/A 2011 11,390 380 8,500 N/A N/A 950 (C) 8,500 N/A (E) (D) N/A N/A Harrison Inc Income Statement For the year 2010 Revenues Cost of sales Gross profit Wage expenses Other expenses Net income 2011 35,300 48,210 (25,200) (29,400) 10,100 18,810 (F) (4,580) (479) (3,500) 5,450 10,730 Harrison Inc Cash Flow Statement For the year 2010 Cash From Operations 4,500 Cash From Investing (3,000) Cash From Financing 2,000 2011 9,460 (3,500) 3,000 Additional information: 1. A positive amount in the statement of cash flows signifies a cash inflow; a negative amount signifies a cash outflow. 2. Cash from investing in 2010 and 2011 relates to the purchase of additional equipment. No other equipment was purchased or sold in 2010 and 2011. 3. Cash from financing in 2011 includes: (i) a cash outflow of dividend - $2,000, (ii) a cash inflow from issuance of new stock - $1,500, (iii) a cash inflow from receiving a loan in the form of a note payable - $3,500. The following events occurred for Taylor Corporation: a. Received investment of $17,000 cash by organizers and distributed 1,000 shares of $1 par value common stock to them. b. Purchased $4,000 of equipment, paying $500 in cash and signing a note for the rest. c. Borrowed $4,500 cash from a bank. d. Loaned $250 to an employee who signed a note. e. Purchased $7,500 of land; paid $2,000 in cash and signed a mortgage note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the following headings: Event Assets Liabilities + Stockholders' Equity

Answer rating: 100% (QA)

1 Sales revenue A Costs Direct materials Less Selling and administrative NOL 2 Particulars Add Direc... View the full answer