gobearcats - Basic Review of the Accounting Cycle: GO...

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Basic Review of the Accounting Cycle: GO BEARCATS! COMPANY Record each of the business transactions below with accounting equation for Go Bearcats! Inc. Then prepare an income statement, balance sheet, direct cash flow statement, and statement of changes in owners’ equity for the month. Jan 1. Shareholders begin a new business, Go Bearcats!, Inc., on the first day of the year. They invest $100,000 of cash in exchange for 10,000 shares of common stock. Jan 2. Go Bearcats!, Inc. purchases land and a building for $30,000 in cash and a $100,000 mortgage. $50,000 of the cost was attributed to the land and $80,000 to the building. Jan 3. Employees were hired. Their salaries will be $5,000 per month. Jan 6. Merchandise for resale (inventory) was purchased for $25,000 on account. The goods were marked to sell for $42,000. Jan 10. Merchandise that cost $20,000 was sold for $35,000. Only $19,000 cash was received at the time of sale. Jan 11. The supplier from whom the merchandise was purchased on Jan. 6 was paid $25,000 cash. At the same time, orders were placed for additional merchandise worth of $13,000. Jan 13.
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This note was uploaded on 03/12/2012 for the course ACCT 211 taught by Professor Kamlet during the Spring '08 term at Binghamton University.

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gobearcats - Basic Review of the Accounting Cycle: GO...

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