G₁ Required information [The following information applies to the questions displayed below] Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1.500 common shares to Kelly in exchange for $22,000. d (b) Borrowed $43,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by paying cash of $48,000 and signing a promissory note for th six months. This loan contains a clause ("covenant) that requires Business Sim Corporation (B current assets to current liabilities of at least 2.1. Required: 1. Analyze the accounting equation effects of each of these four transactions. (Enter any decreases to account balances with a minus sign.) (d) Received $1,100 of supplies and promised to pay for them in 30 days. Recommendation - Click on the Hint link and watch the guided example for this question. It provides a helpful review of the following process: (1) analyze each transaction for its effects on the accounting equation, (2) record the effects using a journal entry and post them to T-acocunt, (3) prepare a classified balance sheet and (4) calculate current ratio. CAUTION- The guided examples are a great study resource to help you learn the material, but they will not be available on the exam so make sure you are able to do these questions independently. Totals Assets ng $7,000 due in ntain a ratio of 0 Liabilities Stockholders' Equity
G₁ Required information [The following information applies to the questions displayed below] Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1.500 common shares to Kelly in exchange for $22,000. d (b) Borrowed $43,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by paying cash of $48,000 and signing a promissory note for th six months. This loan contains a clause ("covenant) that requires Business Sim Corporation (B current assets to current liabilities of at least 2.1. Required: 1. Analyze the accounting equation effects of each of these four transactions. (Enter any decreases to account balances with a minus sign.) (d) Received $1,100 of supplies and promised to pay for them in 30 days. Recommendation - Click on the Hint link and watch the guided example for this question. It provides a helpful review of the following process: (1) analyze each transaction for its effects on the accounting equation, (2) record the effects using a journal entry and post them to T-acocunt, (3) prepare a classified balance sheet and (4) calculate current ratio. CAUTION- The guided examples are a great study resource to help you learn the material, but they will not be available on the exam so make sure you are able to do these questions independently. Totals Assets ng $7,000 due in ntain a ratio of 0 Liabilities Stockholders' Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
Question
![AUUT
Required information
[The following information applies to the questions displayed below]
Business Sim Corporation (BSC) entered into the following four transactions:
(a) Issued 1.500 common shares to Kelly in exchange for $22,000.
(b) Borrowed $43,000 from the bank, promising to repay it in two years.
(c) Bought computer equipment by paying cash of $48,000 and signing a promissory note for the
six months. This loan contains a clause ("covenant) that requires Business Sim Corporation (BSC)
current assets to current liabilities of at least 2.1.
(d) Received $1,100 of supplies and promised to pay for them in 30 days.
Recommendation- Click on the Hint link and watch the guided example for this question. It provides a helpful review of
the following process: (1) analyze each transaction for its effects on the accounting equation, (2) record the effects using a
journal entry and post them to T-acocunt, (3) prepare a classified balance sheet and (4) calculate current ratio. CAUTION-
The guided examples are a great study resource to help you learn the material, but they will not be available on the exam
so make sure you are able to do these questions independently.
Required:
1. Analyze the accounting equation effects of each of these four transactions. (Enter any decreases to account balances with a
minus sign.)
b
Totals
Assets
0
Liabilities
$7,000 due in
maintain a ratio of
0
Stockholders' Equity
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf019715-463c-43e2-83f6-e22af19edc6b%2F3dae7423-14ca-426b-9dd2-c2b6321c38b3%2Fnglu7a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:AUUT
Required information
[The following information applies to the questions displayed below]
Business Sim Corporation (BSC) entered into the following four transactions:
(a) Issued 1.500 common shares to Kelly in exchange for $22,000.
(b) Borrowed $43,000 from the bank, promising to repay it in two years.
(c) Bought computer equipment by paying cash of $48,000 and signing a promissory note for the
six months. This loan contains a clause ("covenant) that requires Business Sim Corporation (BSC)
current assets to current liabilities of at least 2.1.
(d) Received $1,100 of supplies and promised to pay for them in 30 days.
Recommendation- Click on the Hint link and watch the guided example for this question. It provides a helpful review of
the following process: (1) analyze each transaction for its effects on the accounting equation, (2) record the effects using a
journal entry and post them to T-acocunt, (3) prepare a classified balance sheet and (4) calculate current ratio. CAUTION-
The guided examples are a great study resource to help you learn the material, but they will not be available on the exam
so make sure you are able to do these questions independently.
Required:
1. Analyze the accounting equation effects of each of these four transactions. (Enter any decreases to account balances with a
minus sign.)
b
Totals
Assets
0
Liabilities
$7,000 due in
maintain a ratio of
0
Stockholders' Equity
0
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