MyAccountingLab Access Code
3rd Edition
ISBN: 9780132952644
Author: Pearson
Publisher: Pearson College Div
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Textbook Question
Chapter 1, Problem 21EA
For each of the transactions given, tell whether it increases, decreases, or has no effect on shareholders’ equity. Consider both shareholders’ equity components—contributed capital and
- 1. Two friends get together, each contributing $7,125, to start the Swing Right Golf Supplies Corporation in exchange for common stock.
- 2. Swing Right purchases equipment for $6,250 cash.
- 3. Swing Right purchases $3,000 worth of inventory for cash.
- 4. Swing Right pays expenses of $800 for electricity and phone for the month.
- 5. Swing Right makes cash sales to customers of $4,685 during the month.
- 6. Swing Right pays employees $2,000 for hours worked during the month.
- 7. Swing Right declares and pays $500 dividends to each of its owners at the end of the month.
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Chapter 1 Solutions
MyAccountingLab Access Code
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
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