The Ace Restaurant Incorporated (ARI) has had several activities occur during December 20XZ. Explain how each...

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The Ace Restaurant Incorporated (ARI) has had several activities occur during December 20XZ. Explain how each selected activity directly affects balance sheet accounts or income statement accounts. The following is an example of a statement, and the impact you will explain. Example 1,000 shares of common stock are sold at Increases cash by $10,000 and the par value of $10 per share Problem transactions: December Transactions On December 10, 20x2 the Board of Directors declares a cash dividend of $3.50 per share payable in January 20X3. (35,000 shares are outstanding.) Accounts receivables of $45,000 are collected A delivery truck costing $32,000 is purchased. Cash of $3,200 is paid and a note payable for the remainder is signed. The note will be paid off in 3 years in equal amounts. Cash sales total $65,000 for the month. Food for resale costing $22,000 is purchased on account. Employees are paid $22,000 of wages due for the month. A supplier is paid $15,000 on account. The Electricity bill of $2,000 is paid for December. Impact Increases Cash by $10,000 and increases Common Stock by $10,000 Impact The Ace Restaurant Incorporated (ARI) has had several activities occur during December 20XZ. Explain how each selected activity directly affects balance sheet accounts or income statement accounts. The following is an example of a statement, and the impact you will explain. Example 1,000 shares of common stock are sold at Increases cash by $10,000 and the par value of $10 per share Problem transactions: December Transactions On December 10, 20x2 the Board of Directors declares a cash dividend of $3.50 per share payable in January 20X3. (35,000 shares are outstanding.) Accounts receivables of $45,000 are collected A delivery truck costing $32,000 is purchased. Cash of $3,200 is paid and a note payable for the remainder is signed. The note will be paid off in 3 years in equal amounts. Cash sales total $65,000 for the month. Food for resale costing $22,000 is purchased on account. Employees are paid $22,000 of wages due for the month. A supplier is paid $15,000 on account. The Electricity bill of $2,000 is paid for December. Impact Increases Cash by $10,000 and increases Common Stock by $10,000 Impact

Answer rating: 100% (QA)

1 On December 10 20X2 the Board of Directors declares a cash dividend of 350 per share payable in January 20X3 35000 shares are outstanding This activity has no direct impact on the balance sheet or i... View the full answer