Chapter-2_solution - Chapter - 2 ANSWERS TO MULTIPLE CHOICE...

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Chapter - 2 ANSWERS TO MULTIPLE CHOICE 1. b) 2. d) 3. c) 4. d) 5. a) 6. d) 7. c) 8. a) 9. d) 10. d) M2–6. Assets = Liabilities + Stockholders’ Equity a. Cash +1,000 Notes payable +1,000 b. Cash +3,000 Contributed capital +3,000 c. Cash Equipment –100 +500 Note payable +400 d. Cash –100 Retained earnings –100 e. Cash –200 Note receivable +200 E2–4. Assets = Liabilities + Stockholders’ Equity a. Cash +20,000 Contributed capital +20,000 b. Cash +6,000 Note payable +6,000 c. Land Cash +12,000 –1,000 Mortgage note payable +11,000 d. Note receivable Cash +300 –300 e. Equipment Cash +8,000 –1,000 Notes payable +7,000
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E2–5 Req. 1 Assets = Liabilities + Stockholders’ Equity a. Property, plant Cash +216.3 –211.3 Note payable +5.0 b. Cash +21.1 Contributed capital +21.1 c. Cash –78.8 Dividends payable +21.2 Retained earnings –100.0 d. No effects e. Cash Investments +1.4 –1.4 Req. 2 The separate-entity assumption states that transactions of the business are
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This note was uploaded on 12/24/2008 for the course CIM ACCT501 taught by Professor Talah during the Spring '08 term at King Fahd University of Petroleum & Minerals.

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Chapter-2_solution - Chapter - 2 ANSWERS TO MULTIPLE CHOICE...

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