Acc 201 Chapter 1 & 2 Problems

proceeding 1-2 a. Investors put assets into the guild with the expectation of sharing profits. Creditors recoil in assets to the company with the expectation of repayment of the principal irrefutable lodge in on the loan. b. Kennedy Company greenbackancy comparability EventAssets=Liabilities +Stockholders Equity money Notes collectable cat valium StockRetained gelt Acquired assets$3,400 $1,600 $1,800 Incurred loss(1,600) (1,600) repose$1,800=$1,600+$1,800$(1,600) The notes proportionality of $1,800 bequeath be distributed first to the creditors. Since the company owed $1,600 to creditors and there be sufficient funds to pay them, the creditors go forth assemble $1,600. The investors will receive the balance of $200. c. Kennedy Company Accounting Equation EventAssets=Liabilities +Stockholders Equity Cash Notes Payable Common StockRetained cabbage Acquired assets$3,400 $1,600 $1,800 earned profit1, 600 1,600 Balance$5,000=$1,600+$1,800$1,600 The creditor will receive the $1,600 that is owed to them. The stockholders will receive their initial investment of $1,800 plus an additional $1,600 of profit for a total of $3,400.

EXERCISE 1-4 EntitiesDistribution of Cash Mr. Chang (personal cipher)Personal rate was fall by the $30,000 cash deposited in the Chang Enterprises business method of accounting. Chang EnterprisesCash account change order of magnitude by the $30,000 cash deposited by Mr. Chang. Cash account change magnitude by $40,000 cash borrowed from First Bank. Cash account increase by $64,000 cash invested by Jim Harwood. Ca! sh account fall by $120,000 cash used to purchase building. Cash account increased by $28,000 cash revenue earned. Cash account decreased by $25,000 cash payment to employees for salaries. First BankCash account decreased by $40,000 cash loaned to Chang Enterprises. Jim Harwood, father-in-law, personal accountCash decreased by $64,000 cash invested...If you want to fuck off a effective essay, order it on our website: OrderCustomPaper.com

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