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Exercise 1-6 Effect of transactions on general ledger accounts
At the beginning of 2018, Better Corp.’s accounting records had the following general ledger accounts and balances:
Better Corp. completed the following transactions during 2018:
1. Purchased land for $5,000 cash.
2. Acquired $25,000 cash from the issue of common stock.
3. Received $75,000 cash for providing services to customers.
4. Paid cash operating expenses of $42,000.
5. Borrowed $10,000 cash from the bank.
6. Paid a $5,000 cash dividend to the stockholders.
7. Determined that the market value of the land purchased in event 1 is $35,000.
Required
a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the
b. As of December 31, 2018, determine the total amount of assets, liabilities, and stockholders’ equity and present this information in the form of an
c. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, 2019?
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Chapter 1 Solutions
Survey Of Accounting
- The Willow Mills Company mills barley into flour. The equivalent units are measured in terms of tons of flour produced. At the beginning of the year, the mill contained 25 tons of barley that was 40 percent milled. During the year, another 600 tons of barley were completely milled. At the end of the year, the company has 50 tons of barley 70 percent milled. How many equivalent tons of barley has Willow Mills Company milled during the year?helparrow_forwardProvide general accounting questions.arrow_forwardGeneral accountingarrow_forward
- The Manana Corporation had annual sales of $60 million that occurred evenly throughout the 365 days of the year. Its accounts receivable balance averaged $2 million. How long, on average, does it take the firm to collect on its sales? a. 12.2 days. b. 19.1 days. c. 15.8 days. d. 25.2 days.arrow_forwardneed help this questionsarrow_forwardWhat are the equivalent units of production for materials?arrow_forward
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