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Indicate the amount and effect of each transaction on total assets, total liabilities, and total stockholders' equity, and then compute the new total category. The first transaction is provided as an illustration. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Leave no cells blank. Enter "0" wherever necessary. August 1, 2022 totals August 3, borrowed $15,000 in cash from the bank New totals August 7, bought merchandise inventory valued at $17.500 on account New totals August 10, paid $5,500 cash for operating expenses New totals August 14, received $50,000 in cash from sales of merchandise that had cost $33,000 New totals August 17, paid $13,000 owed on accounts payable New totals August 21, collected $17.500 of accounts receivable New totals August 24, repaid $12,000 to the bank, plus $240 interest New totals August 20, paid Rudy Gandolfi a cash dividend of $3,000 New totals S $ $ $ $ $ $ Assets $ 780,000 $ 287,000 15,000 15,000 302,000 795,000 795,000 Liabilities $ 302,000 795,000 $ 302,000 795,000 $ 795,000 795,000 $ $ 795,000 $ 795,000 = $ Stockholder's Equity $ 493,000 0 $ 493,000 $ $ 493,000 302,000 $ 302,000 $ 302,000 $ 302,000 $ 493,000 302,000+ $ 493,000 493,000 493,000 493,000 493,000 SI

Indicate the amount and effect of each transaction on total assets, total liabilities, and total stockholders' equity, and then compute the new total category. The first transaction is provided as an illustration. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Leave no cells blank. Enter "0" wherever necessary. August 1, 2022 totals August 3, borrowed $15,000 in cash from the bank New totals August 7, bought merchandise inventory valued at $17.500 on account New totals August 10, paid $5,500 cash for operating expenses New totals August 14, received $50,000 in cash from sales of merchandise that had cost $33,000 New totals August 17, paid $13,000 owed on accounts payable New totals August 21, collected $17.500 of accounts receivable New totals August 24, repaid $12,000 to the bank, plus $240 interest New totals August 20, paid Rudy Gandolfi a cash dividend of $3,000 New totals S $ $ $ $ $ $ Assets $ 780,000 $ 287,000 15,000 15,000 302,000 795,000 795,000 Liabilities $ 302,000 795,000 $ 302,000 795,000 $ 795,000 795,000 $ $ 795,000 $ 795,000 = $ Stockholder's Equity $ 493,000 0 $ 493,000 $ $ 493,000 302,000 $ 302,000 $ 302,000 $ 302,000 $ 493,000 302,000+ $ 493,000 493,000 493,000 493,000 493,000 SI

FINANCIAL ACCOUNTING
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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Indicate the amount and effect of each transaction on total assets, total liabilities, and total stockholders' equity, and then compute the new total category. The first transaction is provided as an illustration. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Leave no cells blank. Enter "0" wherever necessary. August 1, 2022 totals August 3, borrowed $15,000 in cash from the bank New totals August 7, bought merchandise inventory valued at $17.500 on account New totals August 10, paid $5,500 cash for operating expenses New totals August 14, received $50,000 in cash from sales of merchandise that had cost $33,000 New totals August 17, paid $13,000 owed on accounts payable New totals August 21, collected $17.500 of accounts receivable New totals August 24, repaid $12,000 to the bank, plus $240 interest New totals August 29, paid Rudy Gandolfi a cash dividend of $3,000 New totals $ $ $ $ $ $ Assets 780,000 15,000 795,000 795,000 $ 795,000 $ 795,000 Liabilities 795,000 $ $ 795,000 $ 287,000 15,000 $ 302,000 $ 795,000 $ 795,000 = 302,000 302,000 $ 302,000 Stockholder's Equity $ 493,000 0 493,000 $ 302,000 $ $ 493,000 $ $ $ 302,000 $ $ 302,000 $ 493,000 $ 302,000+ $ 493,000 493,000 493,000 493,000 493,000 SH
Transcribed Image Text:Indicate the amount and effect of each transaction on total assets, total liabilities, and total stockholders' equity, and then compute the new total category. The first transaction is provided as an illustration. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. Leave no cells blank. Enter "0" wherever necessary. August 1, 2022 totals August 3, borrowed $15,000 in cash from the bank New totals August 7, bought merchandise inventory valued at $17.500 on account New totals August 10, paid $5,500 cash for operating expenses New totals August 14, received $50,000 in cash from sales of merchandise that had cost $33,000 New totals August 17, paid $13,000 owed on accounts payable New totals August 21, collected $17.500 of accounts receivable New totals August 24, repaid $12,000 to the bank, plus $240 interest New totals August 29, paid Rudy Gandolfi a cash dividend of $3,000 New totals $ $ $ $ $ $ Assets 780,000 15,000 795,000 795,000 $ 795,000 $ 795,000 Liabilities 795,000 $ $ 795,000 $ 287,000 15,000 $ 302,000 $ 795,000 $ 795,000 = 302,000 302,000 $ 302,000 Stockholder's Equity $ 493,000 0 493,000 $ 302,000 $ $ 493,000 $ $ $ 302,000 $ $ 302,000 $ 493,000 $ 302,000+ $ 493,000 493,000 493,000 493,000 493,000 SH
Rudy Gandolfi owns and operates Rudy's Furniture Emporium Incorporated. The balance sheet totals for assets, liabilities, and stockholders' equity at August 1, 2022, are as indicated. Described here are several transactions entered into by the company throughout the month of August. Required: a. Indicate the amount and effect of each transaction on total assets, total liabilities, and total stockholders' equity, and then compute the new totals for each category. The first transaction is provided as an illustration. b. What was the amount of net income (or loss) during August? How much were total revenues and total expenses during August? c. What were the net changes during the month of August in total assets, total liabilities, and total stockholders' equity? d. Which of the following statement(s) is/are true?
Transcribed Image Text:Rudy Gandolfi owns and operates Rudy's Furniture Emporium Incorporated. The balance sheet totals for assets, liabilities, and stockholders' equity at August 1, 2022, are as indicated. Described here are several transactions entered into by the company throughout the month of August. Required: a. Indicate the amount and effect of each transaction on total assets, total liabilities, and total stockholders' equity, and then compute the new totals for each category. The first transaction is provided as an illustration. b. What was the amount of net income (or loss) during August? How much were total revenues and total expenses during August? c. What were the net changes during the month of August in total assets, total liabilities, and total stockholders' equity? d. Which of the following statement(s) is/are true?
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