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 remaining $7,000 due in six months. This loan contains a clause (covenant) that requires Business Sim Corporation (BSC) to maintain a ratio of current assets to current liabilities of at least 21. (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. 2-a. Prepare journal entries for the transactions described. 2-b. Prepare T-accounts. Assume all beginning balances are zero.
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 remaining $7,000 due in six months. This loan contains a clause (covenant) that requires Business Sim Corporation (BSC) to maintain a ratio of current assets to current liabilities of at least 21. (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. 2-a. Prepare journal entries for the transactions described. 2-b. Prepare T-accounts. Assume all beginning balances are zero.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text: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 remaining $7,000 due in
six months. This loan contains a clause (covenant) that requires Business Sim Corporation (BSC) to maintain a ratio of
current assets to current liabilities of at least 21
(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
2-a. Prepare journal entries for the transactions described.
2-b. Prepare T-accounts. Assume all beginning balances are zero.
Complete this question by entering your answers in the tabs below.
Reg 2A
Keq 20
Prepare journal entries for the transactions described. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field.)
View transaction t
Journal entry worksheet
< 1
2 3
Business Sim Corp. (BSC) issued 1,500 common shares to Kelly in exchange
for $22,000. Record the transaction.
Note: Enter debts before cred
Transaction
Racord entry
General Journal
Clear entry
auth
Debil
Crud
View general journal
Req 28 >
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