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Rudy Gandolfi owns and operates Rudy's Furniture Emporium Inc. The balance sheet totals for assets, liabilities, and stockholders' equity at August 1, 2019, 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. Indicate the financial statement effect. 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D

Rudy Gandolfi owns and operates Rudy's Furniture Emporium Inc. The balance sheet totals for assets, liabilities, and stockholders' equity at August 1, 2019, 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. Indicate the financial statement effect. 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D

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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August 1, 2019 totals August 3, borrowed $12,500 in cash from the bank New totals August 7, bought merchandise inventory valued at $17,500 on account New totals August 10, paid $8,000 cash for operating expenses New totals August 14, received $52,000 in cash from sales of merchandise that had cost $34,320 New totals August 17, paid $12,500 owed on accounts payable New totals August 21, collected $18,500 of accounts receivable New totals August 24, repaid $14,000 to the bank, plus $280 interest New totals August 29, paid Rudy Gandolfi a cash dividend of $4,500 August 31, 2019 totals $ $ $ $ $ $ $ $ Assets Liabilities 745,000 $ 283,000 12,500 12,500 757,500 295,500 17,500 775,000 (8,000) 767,000 $ 52,000 $ $ 769,220 = $ 819,000 $ (12,500) 806,500 295,500 $ 462,000 295,500 $ Stockholder's Equity $ 462,000 0 $ 462,000 $ 462,000 295,500 $ 462,000 $ 295,500 $ 462,000 (18,500) 788,000 $ 295,500 $ (14,280) 773,720 $ (4,500) 295,500 $ 295,500 + $ 462,000 462,000 462,000
Transcribed Image Text:August 1, 2019 totals August 3, borrowed $12,500 in cash from the bank New totals August 7, bought merchandise inventory valued at $17,500 on account New totals August 10, paid $8,000 cash for operating expenses New totals August 14, received $52,000 in cash from sales of merchandise that had cost $34,320 New totals August 17, paid $12,500 owed on accounts payable New totals August 21, collected $18,500 of accounts receivable New totals August 24, repaid $14,000 to the bank, plus $280 interest New totals August 29, paid Rudy Gandolfi a cash dividend of $4,500 August 31, 2019 totals $ $ $ $ $ $ $ $ Assets Liabilities 745,000 $ 283,000 12,500 12,500 757,500 295,500 17,500 775,000 (8,000) 767,000 $ 52,000 $ $ 769,220 = $ 819,000 $ (12,500) 806,500 295,500 $ 462,000 295,500 $ Stockholder's Equity $ 462,000 0 $ 462,000 $ 462,000 295,500 $ 462,000 $ 295,500 $ 462,000 (18,500) 788,000 $ 295,500 $ (14,280) 773,720 $ (4,500) 295,500 $ 295,500 + $ 462,000 462,000 462,000
Rudy Gandolfi owns and operates Rudy's Furniture Emporium Inc. The balance sheet totals for assets, liabilities, and stockholders' equity at August 1, 2019, 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. Indicate the financial statement effect. 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D
Transcribed Image Text:Rudy Gandolfi owns and operates Rudy's Furniture Emporium Inc. The balance sheet totals for assets, liabilities, and stockholders' equity at August 1, 2019, 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. Indicate the financial statement effect. 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D
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