D Bowers Week 3 HW.xlsx

D Bowers Week 3 HW.xlsx - E2.15 Fernandez Co experienced...

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E2.15 Fernandez & Co. experienced the following six events during the current year: 1. The sale of common stock to investors for $5,000,000 cash. 2. The sale of a new bond issue to investors for $10,000,000 cash. 3. The purchase of $500,000 of inventory for cash. 4. The purchase of $700,000 of equipment using bank financing. 5. The payment of $100,000 cash for income taxes associated with last year’s operations. 6. The CFO determined that net income for the most recent month was $2,000,000. Assume all Enter each of the above transactions into the balance sheet equation as illustrated in this chapt Fernandez & Co. 1 2 3 Assets Cash 5,000,000 10,000,000 -500,000 Inventory 500,000 Equipment Total Assets Liabilities Taxes payable Notes payable Bonds payable 10,000,000 Total liabilities Shareholders equity Common stock 5,000,000 Retained earnings Total shareholders equity E2.20 Marilyn Miller opened a floral shop using $5,000 of her own cash savings and with $15,000 in c She signed a lease on a small store for one year, agreeing to pay $350 per month in rent.
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