D Bowers Week 3 HW.xlsx

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

Info icon This preview shows pages 1–2. Sign up to view the full content.

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.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern