Chapter 3 Recommended Problems
E3-11 Selected transactions for Protheroe Corporation during its first month in business are
Sept. 1 Issued common stock in exchange for $20,000 cash received from
5 Purchased equipment f
Chapter 6 Solutions
Ending inventoryphysical count . $275,000
1. No effecttitle passes to purchaser upon shipment
when terms are FOB shipping point .
2. No effecttitle does not transfer to Gallup until
goods are received .
CHAPTER 2 QUESTION LIST
BE2-4 Identify items affecting stockholders' equity.
For each of the following events affecting the stockholders' equity of Noland, indicate whether the event
would: increase retained earnings (IRE), decrease retained earnings (DRE
BRIEF EXERCISE 2-4
Issued new shares of common stock
Paid a cash dividend
Reported net income of $75,000
Reported net loss of $20,000
BRIEF EXERCISE 2-5
Working capital = Current assets Current liabilities