Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Analyzing Transactions Using the Financial Statement Effects Template Hanlon Advertising Company began the current month with the following balance sheet. Cash $ 80,000 Noncash assets 135,000 Liabilities $ 70,000 110,000 35,000 Contributed capital Earned capital Total assets $215,000 Total liabilities and equity $215,000 Following are summary transactions that occurred during the current month. 1. The company purchased supplies for $7,500 cash; none were used this month. 2. Services of $3,750 were performed this month on credit. 3. Services were performed for $15,000 cash this month. 4. The company purchased advertising for $12,000 cash; the ads will run next month. 5. The company received $1,800 cash as partial payment on accounts receivable from transaction 2. 6. The company paid $5,100 cash toward the accounts payable from the prior month. 7. Paid $4,650 cash toward this month's wages expenses. 8. The company declared and paid dividends of $750 cash.arrow_forwardIdentify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a “+” and the dollar amount in the column or columns. For decreases, place a “−” and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (−) along with dollar amounts. The first transaction is completed as an example.arrow_forwardDirections: Fill in the following table using the equation: ∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity. Indicate the name of the noncash asset, liability, or equity account affected by the transaction and if change in cash is classified as operating (O), investing (I), financing (F), or noncash (NC). The first line has been completed for you as an exampleItem∆Cash = - ∆Noncash Assets + ∆Liabilities + ∆Stockholders Equity1. Prepaid office rent for cash -O = - + Prepaid Rent + + 2. Sale of land held for cash = - + + 3. Cash payment of taxes payable = - + + 4. Issue preferred stock to investors for cash = - + + 5. Purchase equipment that is financed directly by the seller = - + + 6. Paid cash dividend = - + + 7. Pay notes payable = - + + 8. Pay interest payable = - + +arrow_forward
- find assets, liabilities, and stockholders equityarrow_forwardCClassify each of the following items as an Asset (A), Liability (L), or part of Owner’s Equity (OE). a. Computer Tabletb. Accounts Payablec. Accounts Receivabled. Cashe. A. Jones, Capitalarrow_forward3. The capital introduced by the owner will be treated as; Group of answer choices Liability Contra-Asset Asset Long-term investment 4. For every debit (Dr) there has to be an equal and corresponding credit (Cr), this is the rule of; Group of answer choices Cash flow statement Balance sheet Income statement Double entry systemarrow_forward
- Please help mearrow_forwardProvie The Correct Answer with calculationarrow_forwardWhich one of the following options is correct about current assets Select one: a. Current assets are long term assets b. Current assets are not recorded inside the balance sheet rather in the notes section. c. Account receivable & cash are current assets d. Current assets are depreciable.arrow_forward
- Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payablearrow_forwardIdentify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required: a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Transaction 1. Owner invests $900 cash in business in exchange for stock 2. Receives $700 cash for services provided 3. Pays $500 cash for employee wages 4. Buys $100 of equipment on credit 5. Purchases $200 of…arrow_forwarda) Calculate the equity (total asset – total liability) to asset ratio of the bank (Hint: equity to asset ratio = total equity/total asset) %3D b) Calculate the duration and convexity of the both asset and liability sidesarrow_forward
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