Chapter 3 Example Pages 104-108 - Chapter 3 Page 104 Assets...

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Chapter 3 Page 104 Assets = Liabilities + Equity + $10,000 -6,000 $4,000 + $4,000 $,4000 Cash Note Payable 6,000 4,000 Computer Equip 10,000 1
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Chapter 3 Page 104 Event 1: Investment of Cash by Stockholders Assets = Liabilities Equity + $10,000 +10,000 Cash Common Stock 10,000 10,000 Sierra Corporation Balance Sheet October 1, 2004 Assets Cash $10,000 Total Assets $10,000 Liabilities Total Liabilities $ 0 Stockholder’s Equity Common Stock $10,000 Retained Earnings 0 Total Equity 10,000 Total Liabilities + Equity $10,000 2
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Chapter 3 Page 105 Event 2: Note Issued in Exchange for Cash Assets = Liabilities + Equity $10,000 +5,000 $15,000 +5,000 +5,000 $10,000 $10,000 Cash Note Payable Common Stock 10,000 5,000 15,000 5,000 10,000 Sierra Corporation Balance Sheet October 1, 2004 Assets Cash $15,000 Total Assets $15,000 Liabilities Note Payable $5,000 Total Liabilities $5,000 Stockholder’s Equity Common Stock $10,000 Retained Earnings 0 Total Equity 10,000 Total Liabilities + Equity $15,000 3
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Event 3: Purchase of Office Equipment for Cash Assets = Liabilities + Equity Cash Office Equip. Note Payable Common Stock $15,000 (5,000) $10,000 +5,000 5,000 5,000 $10,000 Cash Note Payable Common Stock 15,000 $10,000 5,000 5,000 10,000 Office Equipment 5,000 Sierra Corporation Balance Sheet October 2, 2004 Assets Cash $10,000 Office Equipment 5,000 Total Assets $15,000 Liabilities Note Payable $5,000 Total Liabilities $5,000 Stockholder’s Equity Common Stock $10,000 Retained Earnings 0 Total Equity 10,000 Total Liabilities + Equity $15,000 4
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Event 4: Receipt of Cash Advance from Customer Assets = Liabilities + Equity Cash Office Equip. Note Payable Unearned Revenue Common Stock $10,000 +1,200 $11,200 5,000 5,000 +1,200 1,200 $10,000 Cash Note Payable Common Stock $10,000 +1,200 $11,200 5,000 $10,000 Computer Equip Unearned Revenue 5,000 1,200 Balance Sheet October 2, 2004 Assets Cash $ 11,200 Office Equipment 5,000 Total Assets $16,200 Liabilities Note Payable $5,000 Unearned Revenue 1,200 Total Liabilities $6,200 Stockholder’s Equity Common Stock $10,000 Retained Earnings 0 Total Equity 10,000 Total Liabilities + Equity $16,200 5
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advance? Cash
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This note was uploaded on 04/27/2010 for the course ACCOUNTING 201 taught by Professor D.kanarella during the Spring '10 term at University of Toronto- Toronto.

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Chapter 3 Example Pages 104-108 - Chapter 3 Page 104 Assets...

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