A100+Midterm%2BFall%2B2%2B2010

Oct 1 2010 independent borrowed 60000 and agreed to

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Unformatted text preview: e overstated assets and understated retained earnings. Use the following information to answer questions 19 through 25: Oct. 1, 2010 - Independent, Inc. formed and received $40,000 from its equity investors. Oct. 1, 2010 - Independent borrowed $60,000 and agreed to pay $66,000 back on October 1, 2011. Nov. 1, 2010 - Purchased land for $60,000 and equipment (5 year useful life, no salvage value) for $24,000. Nov. 1, 2010 - Paid 3 months rent on a building for $9,000. Nov. 5, 2010 - Purchased inventory costing $24,000 on account. Nov. 12, 2010 - Sold $18,000 of inventory for $56,000 on account. Nov. 25, 2010 - Collected $30,000 of the account receivable. Nov. 25, 2010 - Paid accounts.payable Dec. 15, 2010 - Sold two-thirds of the land for $36,000. Dec. 31, 2010 - Paid a dividend of $10,000. 19 What is Independent Inc.'s net income for the three months ending December 31, 2010? a $25,700 b $29,700 c $25,300 d $31,700 e None of the above 20 What is Independent Inc.'s cash balance at December 31, 2010? a $99,000 b $43,...
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This note was uploaded on 09/11/2012 for the course BUS 100 taught by Professor Mo during the Spring '08 term at Indiana.

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