BPA 201 Introduction Problem.pdf - Anne Arundel Community...

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Anne Arundel Community College BPA 201: Financial Accounting R. Beatty Introduction Problem Name: ____________________ Two entrepreneurs, Grasso and Marchetti, decided to start a business together. Grasso and Marchetti decided to form the entity as a corporation; the objective of the business was to provide upscale entertainment events. The business was incorporated on July 1 and called Mr. Worldwide Corporation; during the first month of operations, the corporation reported the following transactions and events (listed in chronological order). A) Issued 1,000 shares of stock to each of the owners (Grasso and Marchetti) on July 1. Each owner invested $10,000 into the corporation. B) Purchased equipment from Too Cool For You Company in exchange for $15,000 cash. The equipment was expected to last for 5 years with no salvage value. C) Spent $2,000 cash for advertising in newspapers, magazines, and on the Internet. D) Performed services for various clients and were paid (in cash) $25,000 for those services.
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