Chapter 2 Homework - Rachel L. Gates ACC-240 Chapter 2...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Rachel L. Gates ACC-240 Chapter 2 Homework CP2-1 Determining Financial Statement Effects of Various Transactions 1.) Lester’s Home Healthcare Services, INC is organized as a private corporation since the introductory statement pointed out the face that each of the four friends who organized the company we issues 8,000 shares of common stock for their contribution to the company. To this day, these four individuals are still the only stockholders in the company. 2.) ** See Next Page for spreadsheet** 3.) Event C was not included in the spreadsheet since this business activity was not a transaction from the business’s standpoint. This was solely the personal business of the two stockholders involved. Documents may have been created; however, no actual “giving” or “receiving” had occurred. 4.) a. Total Assets: $120,000 (40k – 13k + 12k + 65k +16k) b. Total Liabilities: $80,000 c. Total Stockholders’ Equity: $40,000 d. Total Cash Balance: $28,000 (40k – 13k – 3k + 4k) e. Total Current Assets: $31,000 (40k – 13k – 3k + 3k + 4k) 5.) Most of the company’s financing comes from the liabilities. Being that the Note payable is double the amount in which was received from the stockholders’ contributions. CP2-2 1.)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Assets = Liabilities + Stockholders’ Equity Cash Supplie s Land Building Equipment Account s
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/01/2011 for the course ACC 240 taught by Professor Lewis during the Fall '08 term at Eastern Michigan University.

Page1 / 6

Chapter 2 Homework - Rachel L. Gates ACC-240 Chapter 2...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online