How does each of the transactions change the companys

Assignment Help Financial Accounting
Reference no: EM13535045

The eight basic accounts presented in the condensed balance sheet shown below the four assets, the two liabilities, and the two owners' equities. How does each of the following transactions change the company's financial condition?

Condensed Balance Sheet

       

Cash

$250,000

 

Operating liabilities

$350,000

Receivables

$300,000

 

Interest-bearing liabilities

$500,000

Inventory

$400,000

 

Owner's invested capital

$250,000

PP&E, net

$550,000

 

Owner's retained earnings

$400,000

Assets

$1,500,000

=

Liabilities and Owner's Equity

$1,500,000

a. The business borrows $500,000 and signs a legal instrument called a note payable to the lender, promising to pay interest over the life of the loan and to return $500,000 at a future date.

b. The business invests $250,000 in a new machine that it will use for several years and pays for the purchase with a check.

c. The business owners invest an additional $750,000 in the business to aid in its growth and expansion.

d. The business distributes $100,000 of the profit it earned during the year to its shareowners.

Reference no: EM13535045

Questions Cloud

Hot water wash and hot-airdry regimen : Would fabric made from silk containing more bulky residues bemore or less likely to shrink after a hot water wash and hot-airdry regimen? Explain.
Explain the mass of a sample of (ch3)2cchch3 : Compound (CH3)2CCHCH3 contains 85.63 g carbon per 100.0 g compound. Calculate the mass (g) of a sample of (CH3)2CCHCH3 if it contains 148.9 g of carbon.
Estimate from what height did the student fall : A student (m = 63 kg) falls freely from rest and strikes the ground. During the collision with the ground he comes to rest in a time of 0.040 s. From what height did the student fall
What is the acceleration of the mass down the plane : A 5.000-kg mass starts from rest and slides down an incline that is tilted 5 degrees above the horizontal. What is the acceleration of the mass down the plane
How does each of the transactions change the companys : How does each of the transactions change the companys financial condition - The business distributes $100,000 of the profit it earned during the year to its shareowners.
Do all microorganisms use pyruvic acid in the same way : how does the pattern of starch storage relate to the distributon of chlorophyll? Do all microorganisms use pyruvic acid in the same way? Explain. Understand what integral proteins are and what role they serve in membrane function.
How would balance sheet be different : How would balance sheet be different if the business had used accelerated depreciation - companys most recent balance sheet
Calculate how many electrons hit the screen : The current in an electron beam in a cathode-ray tube is measured to be 20 uA. How many electrons hit the screen in 10 seconds
Annual income be to qualify for this mortgage : What must your annual income be to qualify for this mortgage?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss the appropriateness of the journal entries

The president of Gonzales, Inc. used his expense account to purchase a new Suburban solely for personal use. The following journal entry was made. Miscellaneous Expense 29,000 Cash 29,000

  Explain how should the $200 nonrefundable fee for the power

Explain how should the $200 nonrefundable fee for the Power Startrpack be allocated between the activation card and the prepaid voucher?

  Example on activity-based costing system

Lifsey Wedding Fantasy Company makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system

  Prepare all the entries that would be made relative to sales

Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in both 2010 and 2011. Assume a FIFO inventory flow.

  Show balance sheet presentation of investment securities

Journalize the transactions and post to the accounts Debt Investments and Stock Investments and prepare the adjusting entry at December 31, 2012, to report the investments at fair value

  Explain kelly consulting practice set

Record the ending balances from the April 30 post closing trial balance into the ledger sheets or alternatively, you may create T-accounts on an Excel spreadsheet.

  Problem below are current year financial statements for two

problem below are current year financial statements for two companies in the same industries and direct competitors.

  Computation for the operating cycle performance

Computation for the operating cycle performance for Raytheon Corp - complete performance measure EVA, Operating Leverage and ROI.

  Determine the per unit costnbsp from the given dataerte inc

determine the per unit costnbsp from the given data.erte inc. manufactures two models of high pressure steam valves the

  How much is earnings per share for the year

If net income for the year was $75,000 and a preferred stock dividend of $20,000 was paid, what was the beginning value of retained earnings? How much is earnings per share for the year?

  1dividend changes can be used by management as a credible

1.dividend changes can be used by management as a credible communication tool to signal investors about future earnings

  Question 1 on 1st july 2012 the crocus company started

question 1. on 1st july 2012 the crocus company started construction of a new manufacturing plant. the plant was

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd