FUND.ACCT.PRIN.
25th Edition
ISBN: 9781260247985
Author: Wild
Publisher: RENT MCG
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Chapter 1, Problem 22E
To determine
Introduction: The financial statements of a company include a
To prepare: The consecutive statement of owner’s equity.
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The beginning balance sheet of Desk Source Co. included a $700,000 investment in Est stock (25% ownership, Desk has significant influence over Est). During the year, Desk Source completed the following investment transactions:
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Prepare journal entries for each of the following transactions for a
company that has a fiscal year-end of December 31: (1) on October 1,
$12,000 was paid for a one-year fire insurance policy; (2) on June 30
the company loaned its chief financial officer $10,000; principal and
interest at 6% on the note are due in one year; and (3) equipment
costing $60,000 was purchased at the beginning of the year for cash.
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Chapter 1 Solutions
FUND.ACCT.PRIN.
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