Orange inc. provides moving vehicle rental services. It has cargo vans., moving trucks, pickup trucks, trailers, etc.
Question:
Orange inc. provides moving vehicle rental services. It has cargo vans., moving trucks, pickup trucks, trailers, etc. In the year 20X3, the company incurred the following transactions.
The company purchased a license to sell rental car insurance coverage. The cost for the license is $100,000 and it can be used for 10 years after and after that, the company needs to repurchase a license.
The company ordered 10 new cargo vans, which was sold for $50,000 per vehicle. Because of the supply chain issues the cargo vans have not been shipped.
The company issued $60,000 common shares for cash.
The company had a 3 for 1 stock split.
Required
As the junior accountant , you are required to analyze the impact of each transaction on the statement of financial position elements, i.e. increase/decrease and amount on assets, Liabilities, and shareholders’ equity, for the fiscal year ended December 31st fiscal year end. For every transaction make sure to consider the impacts on each of the three elements.
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley