Bundle: Accounting, Loose-leaf Version, 27th + CengageNOWv2, 2 terms Printed Access Card
27th Edition
ISBN: 9781337587426
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 1, Problem 1.3EX
a)
To determine
Business Entity Concept: Business Entity Concept emphasizes that the transactions related to a business needs to be recorded separately. It denotes that each business is a separate, individual unit, and all the transactions relating to that particular business should be recorded separately.
To Identify: The given transactions and their associated entities.
b)
To determine
To Explain: The business transaction.
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Business entity conceptBig Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiast and hunter. Joe’s wife, Pam, owns and operates Glacier Boutique, a women's clothing store. Joe and Pam have established a trust fund to finance their children's college education. The trustfund is maintained by Kalispell State Bank in the name of the children, Trey and Brooke.
a. For each of the following transactions, identify which of the entities listed should record the transaction in its records:
Entities
G
Glacier Boutique
K
Kalispell State Bank
B
Big Sky Sports
X
None of the above
1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank.2. Pam purchased two dozen spring dresses from a Spokane designer for a special spring sale.3. Joe paid a breeder's fee for an English Springer Spaniel to be used as a hunting guide dog.4. Pam authorized…
Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing
trips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiast
and hunter. Joe's wife, Pam, owns and operates Glacier Boutique, a women's clothing store
Joe and Pam have established a trust fund to finance their children's college education. The
trust fund is maintained by Kalispell State Bank in the name of the children, Trey and Brooke
a. For each of the following transactions, identify which of the entities listed should
record the transaction in its records:
Entities
Glacier Boutique
G
Kalispell State Bank
Big Sky Sports
К
В
X
None of the above
1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank
2. Pam purchased two dozen spring dresses from a Spokane designer for a special
spring sale
3. Joe paid a breeder's fee for an English Springer Spaniel to be use
guide dog
4. Pam authorized the trust fund to purchase mutual fund shares
as a…
Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishingtrips. Big Sky Sports is owned and operated by Joe Flannery, a well-known sports enthusiastand hunter. Joe’s wife, Pam, owns and operates Glacier Boutique, a women’s clothing store.Joe and Pam have established a trust fund to finance their children’s college education. Thetrust fund is maintained by Kalispell State Bank in the name of the children, Trey and Brooke.a. For each of the following transactions, identify which of the entities listed shouldrecord the transaction in its records:
1. Pam deposited a $2,000 personal check in the trust fund at Kalispell State Bank.2. Pam purchased two dozen spring dresses from a Spokane designer for a specialspring sale.3. Joe paid a breeder’s fee for an English Springer Spaniel to be used as a huntingguide dog.4. Pam authorized the trust fund to purchase mutual fund shares.5. Joe paid a local doctor for his annual physical, which was required by the…
Chapter 1 Solutions
Bundle: Accounting, Loose-leaf Version, 27th + CengageNOWv2, 2 terms Printed Access Card
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