FACH1 Homework - FACH1 Homework 4 Sole proprietorship...

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Unformatted text preview: FACH1 Homework 4. Sole proprietorship, partnership, or corporation 5. Limited liability, ability to borrow money, widespread ownership, separation of ownership and management 6. Double taxation, lack of owner participation in running the company E1-3 Doggie Dog Company 1. Four: cash, inventory, mobile grooming van, and prepaid insurance 2. Vendors, noteholder, and owner 3. Sole proprietorship, evident by the single listing of capital in the Owner’s Equity section of the balance sheet 4. Kit T. Kat will use the information. His suppliers might be interested and the person/company who holds the note on the van (his creditors). Even potential employees might be interested. Also, some governmental agencies, like the CRA, would have an interest. E1-4 Charlie’s Hot Dogs Assets = Liabilities + Owner’s Equity a. +2,000 cash +2,000 capital +1,000 cash +1,000 notes payable b. +800 inventory (800) cash c. (400) cash (400) expenses d. (600) inventory (600) cost of goods sold +1,600 cash +1,600 revenue e. (25) cash (25) expenses f. (210) cash (200) notes payable (10) interest expense $3,365 $800 $2,565 (1) Total assets = $3,365; (2) Net income = revenue – expenses = 1,600 – 1,035 = $565 E1-3 Doggie Dog Company 1. Four: cash, inventory, mobile grooming van, and prepaid insurance 2. Vendors, noteholder, and owner 3. Sole proprietorship, evident by the single listing of capital in the Owner’s Equity section of the balance sheet 4. Kit T. Kat will use the information. His suppliers might be interested and the person/company who holds the note on the van (his creditors). Even potential employees might be interested. Also, some governmental agencies, like the CRA, would have an interest. E1-4 Charlie’s Hot Dogs Assets = Liabilities + Owner’s Equity a. +2,000 cash +2,000 capital...
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This note was uploaded on 11/04/2011 for the course ACTG ACTG1p11 taught by Professor Brown during the Spring '11 term at Brock University.

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FACH1 Homework - FACH1 Homework 4 Sole proprietorship...

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