I have choosen Kellogg's (2020):NYSE_K_2020.PDF (annualreports.com) Explain the impact of following business decisions on financial statements (on five accounts – Assets/ Liabilities/ Equity/ Revenue and Expense) using double-entry book-keeping system:Purchase of a new asset during the year for $100,000, the age of which is estimated at 5 years, post which it can be sold for $10,000.Buying 1000 units of Raw-material at $150 per unit, and selling 750 units of finished goods for $670 per unit.Buying patents for $20000 which is going to give a benefit for 20 years.

A double-entry bookkeeping system seems to be one in which a corresponding entry, i.e. debits as…

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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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I have choosen Kellogg's (2020):

NYSE_K_2020.PDF (annualreports.com)

Explain the impact of following business decisions on financial statements (on five accounts – Assets/ Liabilities/ Equity/ Revenue and Expense) using double-entry book-keeping system:

Purchase of a new asset during the year for $100,000, the age of which is estimated at 5 years, post which it can be sold for $10,000.
Buying 1000 units of Raw-material at $150 per unit, and selling 750 units of finished goods for $670 per unit.
Buying patents for $20000 which is going to give a benefit for 20 years.

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