LO3 Exerxise1-1 LO3ExercisesExercise 1-1 Types of Business ActivitiesBraxton Corp. was organized on January 1, 2010, to operate a limousines service to andfrom the airport. For each of the following business activities, indicate whether it is afinancing (F), investing (1), or operating (O) activity.1. Issued shares of stock to each of the four owners.2. Purchased two limousines.3. Paid first month's rent for use of garage.4. Obtained loan from local bank.5. Received cash from customer for trip to the airport.6. Paid driver first week's wages.7. Purchased 500-gallon fuel tank.

Investing activity Investing activity are those transaction which are reflect the changes…

Braxton Corp. was organized on January 1, 2010, to operate a limousines service to and from the airport. For each of the following business activities, indicate whether it is a financing (F), investing (I), or operating (0) activity. 1. Issued shares of stock to each of the four owners. 2. Purchased two limousines. 3. Paid first month's rent for use of garage. 4. Obtained loan from local bank. 5. Received cash from customer for trip to the airport.

Braxton Corp. was organized on January 1, 2010, to operate a limousines service to and from the airport. For each of the following business activities, indicate whether it is a financing (F), investing (I), or operating (0) activity. 1. Issued shares of stock to each of the four owners. 2. Purchased two limousines. 3. Paid first month's rent for use of garage. 4. Obtained loan from local bank. 5. Received cash from customer for trip to the airport.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.1E

See similar textbooks

Similar questions

Required information Use the following information for exercise 15 to 18 LO P2 [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained earnings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84,580 Cash Accounts receivable Office supplies Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,020 4,190 Land Office equipment Accounts payable 7,570 830 650 Common stock Exercise 1-17 Preparing a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet Assets Cash Accounts payable Accounts receivable Office supplies Total liabilities Equity Office equipment Common stock Retained…
26 Assume that the total assets, liabilities, Equity of the firm are OMR 40000, OMR 10000 and OMR 30000 respectively.The company sold OMR 3000 furniture for its customer and received notes receivables for OMR 4500. What is the effect of the above transaction on different elements of financial position of the company? a. Assets of the company increase by OMR 4500 and capital of the company increase by OMR 4500 b. Assets of the company decrease by OMR 3000 and capital of the company decrease by OMR 3000 c. None of the given options d. Assets of the company increase by OMR 1500 and capital of the company increase by OMR 1500 Clear my choice ◀︎ Practice problems on chapter -5 and 6
SERIES A EXERCISECLASSIFYING BUSINESS TRANSACTIONS Dolores Lopez opened a newconsulting business. The following transactions occurred duringJanuary of the current year. Classify each transaction as an operating, an investing, or a financing activity.(a) Invested cash in the business, 510,000.(b) Paid office rent, $500. (c) Purchased office equipment. Paid $1,500 cash and agreed to pay thebalance of $2,000 in four monthly installments.(d) Received cash for services rendered, $900.(e) Paid phone bill, $65. (f) Made payment on loan in transaction (c), $500.(g) Paid wages to part-time employee, $500.(h) Received cash for services rendered, $800. (i) Paid electricity bill, $85.(j) Withdrew cash for personal use, $100.(k) Paid wages to part-time employee, $500.
Exam Midterm_F22_C_send.pdf X + ure.com/courses/69731/quizzes/431211/take Journalize the following business transactions in the general journal form for Chosen Company. Accounting Transactions Transactions Investors purchased 1,000 shares of common stock at $5/share from Chosen Company. 2. Purchased $3,000 of inventory on account. Purchased equipment for $10,000, paying $3,000 in cash and the rest on account. 4. Paid $3,000 on account for inventory purchased from transaction 2. No. 1. 3. Assets Cash Accounts Receivable Inventory Supplies Prepaid Insurance Equipment Building Land Accumulated Depreciation Chart of Accounts Liabilities Accounts Payable Unearned Revenue Taxes Payable Notes Payable O Search the web Stockholders' Equity Common Stock Retained Earnings Service Revenue Sales Revenue Advertising Expense Utilities Expense Wages and Salaries Expense Insurance Expense Supplies Expense
Question 1 As the trainee accountant at Decker, a sweetie manufacturer, you are responsible for pulling together the first draft of the consolidated results for the Group. Decker has acquired shares in a number of other companies in recent years and extracts from the most recent financial statements of some of these companies are shown below for the year to 31 December 2019. Income Statements Decker Marathon Snickers £m £m £m Revenue 80 70 80 Cost of sales (26) (47) (30) Gross profit 54 23 50 Operating expenses (18) (14) (20) Operating profit 36 9 30 Dividend income 8 Profit before tax 44 9 30 Tax (13) (2) (9) Profit for the year 31 7 21 Extract from the Statement of Equity Decker Marathon Snickers £m £m £m Opening retained earnings 66 24 39 Profit for the year 31 7 21 Dividends…
¥ Question d. QUESTION 9 021. Basic function of financial manager is to: a. None of these Record all business transactions Ob. Assist the management Oc. O d. Interpret financial data QUESTION 10 During the year 2019, Ahmed's Restaurant earned revenues of $250,000, had expenses of $50,000, purchased assets with a cost of $30,000 and paid dividends to the shareholders of $10,000. Net income for the vear is: Click Save and Submit to save and submit. Click Save All Answers to save all answers.
The following financial statement information is known about five unrelated companies: Company A Company B $106,000 46,000 $121,000 53,000 December 31, 2022: Assets Liabilities December 31, 2023: Assets Liabilities During 2023: Owner investments Profit (loss) Owner withdrawals Equity 112,000 ? $ 60,000 Equity 26,000 (24,000) 6,600 Required: 1. Answer the following questions about Company A: a. What was the equity on December 31, 2022? 98,000 63,000 35,000 ? 7,600 b. What was the equity on December 31, 2023? Company C $ 74,000 36,000 ? 46,000 23,500 19,600 10, 150 Company D $168,000 92,000 266,000 136,000 ? 32,000 -0- Company E $262,000 ? 241,000 158,000 10,600 37,600 19,600
Multiple-step income statement and balance sheet The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of stockholders equity. Additional common stock of 75,000 was issued during the year ended May 31, 20Y2. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple and single-step income statements differ.
Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1 [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $167,000 cash from the owners. During Year 1, the company earned cash revenues of $94,600 and incurred cash expenses of $66,500. The company also paid cash distributions of $13,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.) Problem 8-20A (Algo) Part c Cascade is a corporation. It issued 10,000 shares of $10 par common stock for $167,000 cash to start the business.
Question one Fantastic Corporation is a corporation that owns and operates a public accounting practice. The business transactions during September, 2020 while the new venture was being organized are listed below: Sept. 1 The Corporation issued 20,000 shares of capital stock to Elizabeth Carver in exchange for her investment of Birr 50,000 cash which she had saved over a period of years. Sept. 10 purchased a small office building located on a large lot for a total price of Birr 182,000, of which Birr 106,000 was applicable to the land and Birr76, 000 to the building. A cash payment of Birr 36,500 was made and a note payable was issued for the balance of the purchase price. Sept. 15 purchased a microcomputer system from Computer Stores Inc., for Birr 1,680 cash. Sept. 19 Purchased office furniture, filing cabinets and a typewriter from Davidson Office Supply Company at a cost of Birr 3,960. A cash down payment of Birr 720 was made, the balance to be paid in three equal installments due…
Quèstion 1 The below selected information is taken from the work sheet for Majestic Company, that is owned by Edward, at its year-end. Balance Sheet and Income Statement Statement of Owner's Equity Dr. Cr. Dr. Cr. Edward's Contribution Edward, Withdrawals Totals 100,000 52,000 65,000 150,000 Determine the amount for beginning Capital. Note that Edward's Capital was $200,000 at year-end balance sheet. (Please show your calculations)
Question 3You were recently employed as the Financial Controller at Covid Free Ltd. You were provided with the following information on April 1, 2018: Balance on April 1, 2020Debtors control Dr. $65, 145 Debtors control Cr. 600Creditors control Dr. 950Creditors control Cr. 75, 500Totals for the month of April 2020Cash purchases 35, 600Credit purchases 62, 600Cash Sales 47, 000Credit Sales 75, 000Contra entry: Set off 1, 800Refund to cash customers 2, 800Bad debt written off 3, 300Discount Allowed 3, 750Total payments to suppliers 87, 000Total receipt from customers 98, 800Discount received 5, 500Dishonoured cheques: customers 2, 900Increase in the allowance for bad debts 2, 100Return Inwards 2, 400Return Outwards 15, 200Balances at 30 April 2020Debtors control: Dr. ? Cr: $8 300 Creditors control: Dr. $7 500 Cr: ? Required: A. Prepare the Sales ledger control account B. Prepare the Purchases control account