I need this information created on a balance sheet. You make a personal investment in your company of $5,000 in exchange for 1,000 shares of stock.You purchase a fixed asset, whatever makes sense for your company, (for example, a new laptop for a service business or a bicycle for a bike messenger business) for $1,000. You borrow $10,000 from a local bank for operating expenses.You sell your product or service on account for $250 to a customer. Your customer pays $125 towards the amount that you billed above. You purchase office supplies on account for $300.

I need this information created on a balance sheet. You make a personal investment in your company of $5,000 in exchange for 1,000 shares of stock.You purchase a fixed asset, whatever makes sense for your company, (for example, a new laptop for a service business or a bicycle for a bike messenger business) for $1,000. You borrow $10,000 from a local bank for operating expenses.You sell your product or service on account for $250 to a customer. Your customer pays $125 towards the amount that you billed above. You purchase office supplies on account for $300.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 1TP: You are an accounting student at your local university. Your brother has recently managed to save...

See similar textbooks

Similar questions

You have inherited money from your grandparents, and a friend suggests that you consider buying shares in Wildhorse Ski Products, which manufactures skis and bindings. Because you may need to sell the shares within the next two years to finance your university education, you start your analysis of the company data by calculating (1) working capital, (2) the current ratio, and (3) the quick ratio. Wildhorse’s statement of financial position is as follows: Current assets Cash $148,700 Inventory 168,800 Prepaid expenses 20,453 Non-current assets Land 47,600 Building and equipment 137,800 Other 15,700 Total $539,053 Current liabilities $161,700 Long-term debt 200,700 Share capital 87,200 Retained earnings 89,453 Total $539,053 (a1) What amount of working capital is currently maintained? $________ (b1)Your preference is to have a quick ratio of at least 0.80 and a current ratio of at least 2.00. How do the existing ratios compare with your criteria? (Round answers to 2 decimal places,…
Gareth Breese started a bammy project in April 2009, by investing 80,000 from his Busta Cup earnings. He also secured a loan from the NIBJ At the start of his business he had the following : Equipment 40,000 Van 100,000 Stock 20,000 Use a the accounting equation to determine the amount he received as loan.
The company repays a €45,000 loan by taking out another loan for €30,000 and raising €15,000 new equity.What is the impact on the net assets of the company in monetary terms? One of the directors has loaned the company €25,000 of her own money.What is the impact on the net assets of the company in monetary terms?
Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $123,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $23,429. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $18,450 of additional cash. • You also need to purchase $9,840 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages…
Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $111,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $21,143. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $16,650 of additional cash. • You also need to purchase $8,880 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $5,550. Based on your evaluation you have…
Michael Anderson is starting his computer programming business and has deposited in initial investment of $15,000 into the business cash account. Identify how the accounting equation will be affected.
I am stuck on this one question that I have left for my homework and need help: Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders’ equity, and prove the company’s accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange.B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed.C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid.E. The electric bill in “C” is paid.
I need answers numbers for this. Merle Company pays $3,000 towards the amount due to the equipment purchase. The effect to Equity would be: (Type your numeric answer and submit) Clint M. Invests $30,000 into Merle Company. The effect to Liabilities would be: (Type your numeric answer and submit) Clint M. Invests $30,000 into Merle Company. The effect to Equity would be: (Type your numeric answer and submit) Merle Company purchases a piece of equipment for $5,000 on account. The effect to Assets would be: (Type your numeric answer and submit)
Ms. Muchomoney is incredibly wealthy and has a net worth of $1,000,000,000. She starts a business by giving $100,000 to the company and receiving stock in return. That is the only transaction to date this year. The new business's balance sheet would have: Group of answer choices Total owners' equity of $1,000,100,000. Total owners' equity of $100,000. No owners' equity Total owners' equity of $1,000,000,000.
On January 1, 2025, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $91,316 cash. The new company, Sheffield Sales and Service, has the following transactions during January. 1. Pays $12,000 in advance for 3 months rent of office, showroom, and repair space. 2. Purchases 42 personal computers at a cost of $1,664 each, 8 graphics computers at a cost of 5 2,664 each, and 27 printers at a cost of $464 each, paying cash upon delivery. 3. Sales, repair, and office employees earn $13,916 in salaries and wages during January, of which $4, 316 was still payable at the end of January. 4. Sells 32 personal computers at $2,714 each, 6 graphics computers for $3, 764 each, and 17 printers for $664 each; 576,316 is received in cash in January, and $44, 404 is sold on a deferred payment basis. 5. Other operating expenses of $9, 716 are incurred and paid for during January: $3,316 of incurred expenses are payable at January 31. (a) Using.…
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $31,000 and has cash on hand of $18,000 contributed by Lanni’s owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Choose one option for following blank: A. real asset. B. financial asset. C. real liability. D. Finanical liability. The bank loan is a Financial liability for Lanni, and a Financial asset for the bank. The cash Lanni receives is a Financial asset . 1. The new financial asset destroyed or created is Lanni's promissory note to repay the loan. Lanni uses the cash from the bank plus $18,000 of its own funds to finance the development of new financial planning software. Lanni transfers financial asset (cash) to the software developers. In return, Lanni receives the completed software package, which is a real asset. Lanni exchanges the real asset (the software) for a Financial asset, which is 1,400 shares of…
The Gap has opened a new store in Ottawa, investing $100,000 in cash in return for common shares of the new company that will operate the store. Susan Harper is the store’s manager. During the first week of operations, Harper signed a note payable to purchase land for $40,000 and a building for $130,000. The store also paid $50,000 for store fixtures and $40,000 for inventory to use in the business. All these were paid for in cash. The Gap’s head office requires store managers to provide a weekly report that summarizes and discusses the details of the store’s financial position and how it has changed since the previous report. Susan has asked for your help with this request. Prepare the report for head office (assume all events above took place in the first week of operations).