CONNECT WITH LEARNSMART FOR BODIE: ESSE
11th Edition
ISBN: 9781265046392
Author: Bodie
Publisher: MCG
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Chapter 1, Problem 9PS
Lanni Products is u start-.up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni’s owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction? (LO 1-2)
a. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years.
b. Lanni uses the cash from the hank plus $‘20.000 of its own funds to finance the development of new financial planning software.
c. Lanni sells the software product Lo Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 2.000 shares of Microsoft stock.
d. Lanni sells the shares of stock for $70 per share and uses part of the proceeds to pay off the bank loan.
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Hi,
I need help assembling the following journal entries.
Thank you.
THIS IS A QUESTION REQUIRING AN ESSAY STYLE ANSWER
Freddy has 2 valuable assets.
The first is a home in Sydney woth $900,000.
The second is a large gold watch worth $20,000
He is told that he could use them as security to obtain a loan from the Bank.
What would these securities be called and what does the Bank need to do to
ensure the loan monies would be repaid?
Mr. Steve Persian hired Elizabeth to prepare the Statement of Financial Position of his business. To prepare the statement, Elizabeth identified the following assets and liabilities of Mr. Persian:
a. Cash deposited in YKY Bank amounting to P100, 000
b. He has uncollected sales from customers amounting to P50, 000
c. The total amount of merchandise left inside the warehouse is P35, 000
d. Steve paid in advance the rent amounting to P15, 000 for one year.
e. The machineries and equipment amounted to P150, 000
f. He bought the materials from his suppliers amounting to P30, 000 and promised to pay the said amount one month after the end of the year.
g. He paid the contributions of his employees such as SSS, Philhealth and Pag ibig amounting to P6, 500
h. Outstanding balance to Meralco is amounting to P3, 500
i. He acquired a 2 year loan from YKY Bank amounting to P45, 000.
Chapter 1 Solutions
CONNECT WITH LEARNSMART FOR BODIE: ESSE
Ch. 1 - Prob. 1PSCh. 1 - Prob. 2PSCh. 1 - Prob. 3PSCh. 1 - Prob. 4PSCh. 1 - Prob. 5PSCh. 1 - Prob. 6PSCh. 1 - For each transaction, identify the real and/or...Ch. 1 - Prob. 8PSCh. 1 - Lanni Products is u start-.up computer software...Ch. 1 - Reconsider Lanni Products from Problem 9. (LO 1-2)...
Ch. 1 - Prob. 11PSCh. 1 - Examine the balance sheet of commercial banks in...Ch. 1 - Prob. 13PSCh. 1 - Prob. 14PSCh. 1 - Prob. 15PSCh. 1 - Prob. 16PSCh. 1 - Why would you expect securitization o take place...Ch. 1 - Prob. 18PSCh. 1 - Give an examp1e of three financial intermediaries,...Ch. 1 - Firms raise capital from investors by issuing...Ch. 1 - The average rate of return on investments in large...Ch. 1 - Prob. 22PSCh. 1 - Prob. 1WMCh. 1 - Prob. 2WMCh. 1 - Prob. 3WMCh. 1 - Prob. 4WM
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