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Chapter_1_In-Class_Transaction

Chapter_1_In-Class_Transaction - ACCT 100 Chapter 1...

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ACCT 100 Chapter 1 In-Class Problem Required: Use the accounting equation template on the following page to record the following transactions. 1. October 1 st , 2006- Kirra’s Surf Surfboard Inc., went to the New York Stock Exchange to sell $750,000 worth of common stock to the marketplace in order to raise capital for her brand surfboard manufacturing business. 2. October 15 th - Kirra paid her landlord a total of $120,000 for two years worth of rental space (in advance) for her office and manufacturing facilities. 3. November 1 st - She then purchased $180,000 worth of equipment and machinery that is used to manufacture her surfboards. $140,000 of the purchase was paid with cash and the remaining $40,000 was financed through a bank loan. The loan is to be paid back in 9 months with an annual interest rate of 5%. 4. November 2 nd - Kirra paid consultants $5,000 to install and test the machinery and equipment acquired on November 1 st . 5. November 10 th- Kirra purchased $10,000 worth of office supplies from a supplier with cash.
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