Analyze the impact of business transactions on accounts

Assignment Help Financial Management
Reference no: EM131312048

Learning Objective : Analyze the impact of business transactions on accounts.

The following selected events were experienced by either Landscapes Deluxe, Inc., a corporation, or Bill Tinsley, the major stockholder.

State whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business. Identify any specific asset affected.

a. Received $150,000 cash and issued stock to a stockholder.

b. Purchased land for a building site for the business and signed a $100,000 promissory note to the bank.

c. Purchased supplies on account for $3,000.

d. Tinsley used personal funds to purchase a pool table for his home.

e. Purchased equipment for the business for $87,000 cash.

f. Received $38,000 cash from customers for services performed.

g. Sold land and received a note receivable of $46,000 (the land was carried on the company's books at $46,000).

h. Earned $12,000 in revenue for services performed. The customer promises to pay Landscapes Deluxe in one month.

i. Paid $19,000 cash on accounts payable.

j. The business paid Tinsley a cash dividend of $5,000.

Reference no: EM131312048

Questions Cloud

Prepare a t account to compute the balance for cash : Explain what a transaction is;- Aanalyze the impact of transactions on accounts.- Prepare a T-account to compute the balance for Cash.
What is the steady-state concentration of co in the city : If after attaining steady state, the wind velocity decreases to 1.5 m/s, what is the new steady-state concentration?
Find the margin of error : Find the margin of error and the 95% confidence interval for the survey. Give your answers as percentages rounded to the nearest tenth of a percent.
How does managing the given components of working capital : Write a memo to your CFO about the following: How does managing the following components of working capital becomes more of a challenge when dealing internationally than domestically?
Analyze the impact of business transactions on accounts : Analyze the impact of business transactions on accounts.- State whether each event increased, decreased, or  had no effect on the total assets of the business. Identify any specific asset affected.
Key aspects of operating systems memory management mechanism : Operating Systems (COMP 20004) - An Overview by Pooja Chahar and Surjeet Dalal" which highlights the key aspects needed to consider while resolving deadlock conditions in OS. Justify the role played by the OS in managing the processes to avoid dea..
Observing the velocity of a car at different times : Sam is observing the velocity of a car at different times. After three hours, the velocity of the car is 51 km/h. After five hours, the velocity of the car is 59 km/h. Part A: Write an equation in two variables in the standard form that can be use..
What is the co concentration after 2 h of cooking inside hut : In a poorly ventilated hut in a third world country, logs are burnt to supply heat for cooking purposes. The total volume of the hut is 1000 m3. Log burning releases CO at the rate of 2 mg/h.
Describe the forms of business organizations : Describe the forms of business organizations and the role of financial managers within an organization. Use technology and information resources to research issues in finance.

Reviews

Write a Review

 

Financial Management Questions & Answers

  Use present worth-annual cost and rate of return methods

An electrical energy audit indicates that the motor control center consumption is 8´106 kWh per year. By using high efficiency motors, a savings of 15% can be achieved. The additional cost for these motors is about $80,000. Assuming that the average ..

  New return on equity

The common stock and debt of Northern Sludge are valued at $60 million and $40 million, respectively. Investors currently require a 17.0% return on the common stock and a 7.0% return on the debt.

  The expected value of return for plan

Under good conditions (25% probability), Financing Plan A will produce $30,000 higher return than Plan B. Under normal conditions (65% probability), Plan A will produce $10,000 higher return than Plan B, and under tight money conditions (10% probabil..

  Prepare a term paper on do dividends grow at the same rate

prepare a term paper on do dividends grow at the same rate as earnings and is the gordon model fact or fiction?

  Calculate the net proceeds of the public issue

You need to choose between the following types of issues: A public issue of $10 million face value of 10-year debt. The interest rate on the debt would be 10.5%, and the debt would be issued at face value. The underwriting spread would be 1.9%, and o..

  Since limiting tax liability is goal of estate planning

Since limiting tax liability is a major goal of estate planning, there are various strategies that an estate planner can employ. In this discussion you explore these strategies and their impact on estate plans. Choose one strategy to limit estate tax..

  Expected to pay a dividend

Lifecycle Motorcycle Company is expected to pay a dividend in year 1 of $2.00, a dividend in year 2 of $2.80, and a dividend in year 3 of $3.20. After year 3, dividends are expected to grow at the rate of 6% per year. An appropriate required return f..

  Decided to withdraw the remaining money

Mr. Smith has saved $1,800 each year for 20 years. A year after the saving period ended, Mr. Smith withdrew $7,500 each year for a period of 5 years. In the sixth and seventh years, he only withdrew $5,000 per year. In the eighth year, he decided to ..

  What are the dimensions of the box

An Open top box must have a volume of 108 in^3. What are the dimensions of the box which uses the least amount of materials?

  How much of each bond will you hold in your portfolio

You are managing a portfolio of $1.9 million. Your target duration is 13 years, and you can choose from two bonds: a zero-coupon bond with maturity 6 years, and a perpetuity, each currently yielding 8%. a. How much of each bond will you hold in your ..

  Explain what is meant by the impossible trinity

(A) Please define and explain what is meant by the “Impossible Trinity,” being sure to thoroughly define the relevancy of each facet of the triangle. (B) Please define and explain how the concept of the “Impossible Trinity” applies both to the establ..

  What will be its dividend yield on an annualized basis

Parnell Bolts Inc. has 20 million common shares outstanding and net income of $30 million. The stock sells at a P/E of 15. The company has $5 million available to pay the next quarterly dividend, but is considering a repurchase instead. If Parnell pa..

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