gb613 class exercises

gb613 class exercises - Determining Financial Statement...

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Determining Financial Statement Effects of Several Transactions The Following Events Occurred for Favata Company Received Investment of $20,000 cash by organizers and distributed stock to them. Borrowed $6,000 cash from the bank. Purchased $12,000 in land; paid $1,000 in cash and signed a mortgage note for the balance. Loaned $300 to an employee who signed a note. Purchased $8,000 of equipment, paying $1,000 in cash and signing a note for the rest.
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Professional Headhunters, Inc. (PHI), a job placement company, operates in the northeastern United States. During 2002 the company earned $145,000 in revenue by providing services to customers. However, it collected only $120,000 of the revenue in cash. PHI expected to collect the remaining $25,000 in 2003. In addition, PHI incurred $80,000 of expenses. However, by the end of 2002, PHI had paid only $75,000 of the cash owed for expenses because it had not yet paid $5,000 to employees who had worked during 2002 but not been paid by the end of the
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This note was uploaded on 04/15/2008 for the course AC 201 taught by Professor Hong during the Spring '08 term at Loyola Maryland.

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gb613 class exercises - Determining Financial Statement...

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