FINANCIAL ACCT(HARDBK)+MYACCTGLAB>ICB<
W20 Edition
ISBN: 9780136615583
Author: REIMERS
Publisher: PEARSON C
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 15EA
To determine
Identify and classify each business transactions as an operating, investing or financing activity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a corporation. She then starts the process of getting the business running. In November 2022, the following activities take place.
Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
8 She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account in exchange for common stock.
11 Natalie pays $65 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Expense.)
13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.
14 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer…
Read the following passage, then answer the question that follow.
Scenario
Milly decided to start a business. She does not have any previous experience, but she is confident that she can make it in the restaurant business. She wants to start a business with an initial investment of $1million dollars in a business bank account. She plans to offer both dining and take-out meal services and is anxious to give it her all.On Jan 1, 2002, she brought additional items into her business: her personal car, her stove and a refrigerator valued at $500, 000, $100 000 and $80 000 respectively. On January 6, a customer purchased 10 meals that cost $500 each for which she wrote a receipt. These meals were bought via take out service. At the end of the first week her total sales amounted to $180 000 from which $100 000 was dining room sales and $80 000 from take-out sales. She has a few friends that she allows to order- take-out meals on credit and they have agreed to pay…
Tom loves cooking and after attending culinary school, he decided to start his owneatery in downtown Vancouver in May. Since he did not receive formal business, hehas asked you to help him prepare monthly financial statements. He was able to collectall business receipt and financial records. The following are transactions for the monthof January 2022, the first month of operations.Jan 1 Tom invested his saving of $350,000 into business bank account at TD Bank andhe also borrowed &150,000 as 24 months bank loan.Jan 1 Signed lease contract and secured the locationJan 1 Purchased a one-year insurance policy for $24,000 in cash.Jan 2 Tom purchased kitchen equipment for $150,000 and $1000 kitchen suppliesincluding napkins and clean supplies in cashJan 1 he hired a soul chef and one receptionist. In contract, he will pay the soul chef$5,000 per month and receptionist $3,000 per monthJan 2 Tom purchased $100,000 furniture in cashJan 3 Tom hired a renovation company to do lease…
Chapter 1 Solutions
FINANCIAL ACCT(HARDBK)+MYACCTGLAB>ICB<
Ch. 1 - 1. What is the main purpose of a business? 2....Ch. 1 - Prob. 2YTCh. 1 - 1. What are the two sources of financing for a...Ch. 1 - 1. What are revenues and expenses? 2. What are the...Ch. 1 - 1. What are the two parts of shareholders equity?...Ch. 1 - Prob. 6YTCh. 1 - Prob. 7YTCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3Q
Ch. 1 - Prob. 4QCh. 1 - What are the advantages of the corporate form of...Ch. 1 - What are the disadvantages of the corporate form...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - What are the basic financial statements? Describe...Ch. 1 - What makes the income statement different from the...Ch. 1 - Prob. 11QCh. 1 - What type of activities relate to what the firm is...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Online Pharmacy Company borrowed 5,000 cash from...Ch. 1 - Prob. 7MCQCh. 1 - During its first year of business, West Company...Ch. 1 - Interest is the cost of a. purchasing inventory....Ch. 1 - Prob. 10MCQCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Identify balance sheet items. (LO 4). Classify the...Ch. 1 - Calculate owners equity. (LO 4). Doughnut Company...Ch. 1 - Prob. 4SEACh. 1 - Prob. 5SEACh. 1 - Calculate owners equity. (LO 4). Pasta Enterprises...Ch. 1 - Super Shop had a retained earnings balance of...Ch. 1 - Prob. 8SEBCh. 1 - Prob. 9SEBCh. 1 - Breck Company shows 80,000 worth of assets on its...Ch. 1 - Prob. 11SEBCh. 1 - For each of the following, calculate the missing...Ch. 1 - Prob. 13SEBCh. 1 - M Company had a retained earnings balance of 4,200...Ch. 1 - Prob. 15EACh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 17EACh. 1 - Prob. 18EACh. 1 - Enter each transaction below into the accounting...Ch. 1 - Prob. 20EACh. 1 - For each of the transactions given, tell whether...Ch. 1 - Prob. 22EACh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 24EACh. 1 - Relationship between income statement and balance...Ch. 1 - Bob started a pool cleaning business on the first...Ch. 1 - Prob. 27EACh. 1 - Retained earnings and cash. (LO 4). Checkmate...Ch. 1 - Prob. 29EACh. 1 - Prob. 30EBCh. 1 - Prob. 31EBCh. 1 - Prob. 32EBCh. 1 - Prob. 33EBCh. 1 - Prob. 34EBCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Prob. 36EBCh. 1 - Prob. 37EBCh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 39EBCh. 1 - Prob. 40EBCh. 1 - Frank Frock started a consulting business on the...Ch. 1 - Prob. 42EBCh. 1 - Prob. 43EBCh. 1 - Prob. 44EBCh. 1 - Prob. 45PACh. 1 - Prob. 46PACh. 1 - Prob. 47PACh. 1 - Analyze business transactions and the effect on...Ch. 1 - Prob. 49PACh. 1 - Analyze business transactions and prepare the...Ch. 1 - Prob. 51PACh. 1 - Prob. 52PBCh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 54PBCh. 1 - Prob. 55PBCh. 1 - Prob. 56PBCh. 1 - Prob. 57PBCh. 1 - Prob. 58PBCh. 1 - Prob. 1FSACh. 1 - Prob. 2FSACh. 1 - Prob. 3FSACh. 1 - What is the Walt Disney Companys key objective? Go...
Knowledge Booster
Similar questions
- Two of your friends, Sony and Ted, are planning on starting a new business. Knowing you are studying accounting they come to you for advice as to the best business form they should use for their business. They want to be able to raise capital; they also want protection against claims by creditors. As an accounting student: What business form would you recommend to Sony and Ted for their business? Why?arrow_forwardAfter investigating the different forms of business organization, Natalie Koebel decides to operate her business as a corporation, Cookie Creations Inc., and she begins the process of getting her business running.While at a trade show, Natalie is introduced to Gerry Richards, operations manager of “Biscuits,” a national food retailer. After much discussion, Gerry asks Natalie to consider being Biscuits’ major supplier of oatmeal chocolate chip cookies. He provides Natalie with the most recent copy of the financial statements of Biscuits. He expects that Natalie will need to supply Biscuits’ Watertown warehouse with approximately 1,500 dozen cookies a week. Natalie is to send Biscuits a monthly invoice, and she will be paid approximately 30 days from the date the invoice is received in Biscuits’ Chicago office.Natalie is thrilled with the offer. However, she has recently read in the newspaper that Biscuits has a reputation for selling cookies and donuts with high amounts of sugar and…arrow_forwardI 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.arrow_forward
- R. Nelson invests his personal computer, with a fair market value of 2,500, in the business. How would this transaction be recorded? a. A debit to R. Nelson, Capital, 2,500. b. A credit to Cash, 2,500. c. A credit to Professional Fees, 2,500 d. A debit to Computer, 2,500.arrow_forwardKampfire, Inc., a very successful manufacturer of camping equipment, is considering going public next month to raise funds to help finance the company’s futuregrowth. The financial manager of Kampfire has approached the investmentbanking firm at which you work seeking help with its decision. Your boss askedyou to explain the nature of the U.S. financial markets and the process of issuingequity to the financial manager. To help with this task, your boss has asked youto answer the following questions in explaining the U.S. financial system to thefinancial manager:a. What is a financial market? How are financial markets differentiated frommarkets for physical assets?b. Differentiate between money markets and capital markets.c. Differentiate between a primary market and a secondary market. If Microsoftdecided to issue additional common stock and an investor purchased 1,000shares of this stock from the underwriter, would this transaction be a primarymarket transaction or a secondary market…arrow_forwardTom loves cooking and after attending culinary school, he decided to start his own eatery in downtown Vancouver in May. Since he did not receive formal business, he has asked you to help him prepare monthly financial statements. He was able to collect all business receipt and financial records. The following are transactions for the month of January 2022, the first month of operations. Jan 1 Tom invested his saving of $350,000 into business bank account at TD Bank and he also borrowed &150,000 as 24 months bank loan. Jan 1 Signed lease contract and secured the locationJan 1 Purchased a one-year insurance policy for $24,000 in cash. Jan 2 Tom purchased kitchen equipment for $150,000 and $1000 kitchen supplies including napkins and clean supplies in cash Jan 1 he hired a soul chef and one receptionist. In contract, he will pay the soul chef $5,000 per month and receptionist $3,000 per month Jan 2 Tom purchased $100,000 furniture in cash Jan 3 Tom hired a renovation company to do…arrow_forward
- You have graduated from Holmes Institute with a Master’s Degree in Professional Accounting, and you’re employed as an accountant/financial advisor, for an accounting firm called Big Business Accountants.Harry is a client, and he has made an appointment to see you. Harry is keen in starting a business. This business he is proposing to start is a bakery. Harry has qualifications in bakery which includes making cakes, bread, pastries.Harry, has saved up his money and he has about $50,000.00 in cash. He hasn’t bought any equipment but he has found a shop which he is considering leasing where his bakery business will be operating from.Harry has always been an employee and now he would like to know what type of business structure he should have for his bakery. Use IRAC formula that is issue, rule, application and conclusion for above case regarding the business structure.arrow_forwardMandy is an aspiring entrepreneur and your friend. She is having difficulty understanding the purposes of financial statements and how they fit together. Required:Write a one-page Note to Channing explaining the purposes of these financial statements and how they are linked.arrow_forwardRustic Furniture Co. is owned and operated by Cam Pfeifer. The following is an excerpt from a conversation between Cam Pfeifer and Mitzi Wheeler, the chief accountant for Rustic Furniture Co.:Cam: Mitzi, I’ve got a question about this recent balance sheet.Mitzi: Sure, what’s your question?Cam: Well, as you know, I’m applying for a bank loan to finance our new store in Garden Grove, and I noticed that the accounts payable are listed as $320,000.Mitzi: That’s right. Approximately $275,000 of that represents amounts due our suppliers, and the remainder is miscellaneous payables to creditors for utilities, office equipment, supplies, etc.Cam: That’s what I thought. But as you know, we normally receive a 2% discount from our suppliers for earlier payment, and we always try to take the discount.Mitzi: That’s right. I can’t remember the last time we missed a discount.Cam: Well, in that case, it seems to me the accounts payable should be listed minus the 2% discount. Let’s list the…arrow_forward
- Eric Song has set up as a sole trader and introduced his savings worth £8,000 to his business, Song Sounds. What is the double entry to record the transaction? a) Dr Capital Cr Cash b) Dr Bank Cr Creditors c) Dr Bank Cr Capital d) Dr Capital. Cr Creditorsarrow_forwardAngela de Dios, a business graduate student who was working in Think Computer, a company selling all kinds of computers, decided to become an entrepreneur and put up an internet shop. The following are the transactions for the month of March: 1 - Angela started an internet shop called “Playnet. com” by investing her savings of ₱ 50,000 and the proceeds from the sale of her car of ₱ 300,000 5 - Angela hired two workers to assist her in the shop. 10 - Two month rent deposit was paid in cash, ₱10,000 15 - Paid ₱15,000 for building materials to fix the shop, ₱8,000 for furniture, ₱ 45,000 for one unit of aircon and two units of electric fan. 20 - Purchased supplies for cash, ₱1,500 25 - The shop was ready for the installation of the computer units. Angela purchased 12 units of computer hardware from Think PC. She paid 50% in cash for ₱ 125,000 and a note for the balance payable in 24 monthly installments starting April 20.arrow_forwardAngela de Dios, a business graduate student who was working in Think Computer, a company selling all kinds of computers, decided to become an entrepreneur and put up an internet shop. The following are the transactions for the month of March: 1 - Angela started an internet shop called “ Playnet.com” by investing her savings of ₱ 50,000 and the proceeds from the sale of her car of ₱ 300,000 5 - Angela hired two workers to assist her in the shop. 10 - Two month rent deposit was paid in cash, ₱10,000 15 - Paid ₱15,000 for building materials to fix the shop, ₱8,000 for furniture, ₱ 45,000 for one unit of aircon and two units of electric fan. 20 - Purchased supplies for cash, ₱1,500 25 - The shop was ready for the installation of the computer units. Angela purchased 12 units of computer hardware from Think PC. She paid 50% in cash for ₱ 125,000 and a note for the balance payable in 24 monthly installments starting April 20. The transactions using the following accounts for asset and…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub