The following selected events were experienced by either Landscapes Deluxe, Inc., a corporation, or Bill Tinsley, the
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a. Received $150,000 cash and issued stock to a stockholder.
b. Purchased land for a building site for the business and signed a $100,000 promissory note to the bank.
c. Purchased supplies on account for $3,000.
d. Tinsley used personal funds to purchase a pool table for his home.
e. Purchased equipment for the business for $87,000 cash.
f. Received $38,000 cash from customers for services performed.
g. Sold land and received a note receivable of $46,000 (the land was carried on the company’s books at $46,000).
h. Earned $12,000 in revenue for services performed. The customer promises to pay Landscapes Deluxe in one month.
i. Paid $19,000 cash on accounts payable.
j. The business paid Tinsley a cash dividend of $5,000.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
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