Chuckwagon Company went into business on July 1, 2020. During 2020, Chuckwagon had the following transactions: July 1 - Issued 150 shares of stock to stockholders for a total of $15,000 in cash. July 1 - Borrowed $15,000 from the bank. Chuckwagon will pay nothing until July 1, 2025, and then the company will pay $21,000. July 15 - Bought land for $10,000 in cash. Aug. 1 - Bought equipment for $12,000 in cash. The equipment has an expected useful life of four years and no salvage value. Sep. 1- Paid $1,200 for six months of insurance. Sep. 30 - Bought inventory for $8,000, one-half in cash and one-half on account. Oct. 8 - Sold half of the inventory for $7,000 in cash. Nov. 25 - Sold one-half of land for $4,500 in cash. Dec. 1 - Received $1,000 for work that will be performed in January, 2021. Dec. 16 - Sold $1,000 of inventory for $2,000 on account. Dec. 30 - Received a utility bill for $300, which will be paid in January 2021. • Dec. 31 - Paid a dividend of $200 in cash. How much did the transaction on September 30th change total assets? O ($4,000) $0 $4,000 $8,000 None of the above

Chuckwagon Company went into business on July 1, 2020. During 2020, Chuckwagon had the following transactions: July 1 - Issued 150 shares of stock to stockholders for a total of $15,000 in cash. July 1 - Borrowed $15,000 from the bank. Chuckwagon will pay nothing until July 1, 2025, and then the company will pay $21,000. July 15 - Bought land for $10,000 in cash. Aug. 1 - Bought equipment for $12,000 in cash. The equipment has an expected useful life of four years and no salvage value. Sep. 1- Paid $1,200 for six months of insurance. Sep. 30 - Bought inventory for $8,000, one-half in cash and one-half on account. Oct. 8 - Sold half of the inventory for $7,000 in cash. Nov. 25 - Sold one-half of land for $4,500 in cash. Dec. 1 - Received $1,000 for work that will be performed in January, 2021. Dec. 16 - Sold $1,000 of inventory for $2,000 on account. Dec. 30 - Received a utility bill for $300, which will be paid in January 2021. • Dec. 31 - Paid a dividend of $200 in cash. How much did the transaction on September 30th change total assets? O ($4,000) $0 $4,000 $8,000 None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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