BPA 201 Introduction Problem(1).docx

BPA 201 Introduction Problem(1).docx - Anne Arundel...

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Anne Arundel Community College BPA 201: Financial Accounting – R. Beatty Introduction Problem Name: Matt Binder 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 . -$20,000 or $10,000 each a Owners would be down a total of $20,000 for each of their investments of $10,000 into the company 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. -$35,000 a With the purchase of equipment, the owners are down a total of $35,000 C) Spent $2,000 cash for advertising in newspapers, magazines, and on the Internet.
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