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Personal Finance

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter9: Obtaining Affordable Housing

Section: Chapter Questions

Problem 1FPC

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Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an
outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but
unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through
the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds
for the camp.
Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2024, Tony and Suzie each
purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect
stockholders' equity during the remainder of 2025:
November 5 Issue an additional 100,000 shares of common stock for $10 per share.
November 16 Purchase 10,000 shares of its own common stock (i.e., treasury stock) for $15 per share.
November 24 Resell 4,000 shares of treasury stock at $16 per share.
December 1 Declare a cash dividend on its common stock of $11,400 ($0.10 per share) to all stockholders of record on December 15.
December 20 Pay the cash dividend declared on December 1.
December 30 Pay $800,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings
account.
Requirement
General
Journal
General
Ledger
Trial Balance
Income
Statement
Balance Sheet
The balance sheet is the accounting equation: Assets Liabilities + Equity. Each asset and liability account is reported separately on
the balance sheet. The unadjusted or post-closing balances will appear for each account, based on your selection.
Post-closing
Assets
Current Assets:
GREAT ADVENTURES, INCORPORATED
Balance Sheet
December 31, 2025
Liabilities
Current Liabilities.
0
0
0
0
0
$
0
0
0

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Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2024, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2025: November 5 Issue an additional 116,000 shares of common stock for $10 per share. November 16 Purchase 11,600 shares of its own common stock (i.e., treasury stock) for…
Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp.Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders’ equity during theremainder of 2022:November 5 Issue an additional 100,000 shares of common stock for $10 per share.November 16 Purchase 10,000 shares of its own common stock (i.e., treasury stock) for $15…
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