Chapter 2, Problem 2.1S

LO 1

(Learning Objective 1: Identify transactions) For each of the following items, indicate whether that item would be considered to be a transaction at Gerbig Pet Grooming Corporation.

1. a.  A customer, Layne Gracen, gives Gerbig a check for $620 to prepay for her dog's grooming appointments for the upcoming year.
2. b.  Gerbig pays $310 for last month's electric bill.
3. c. Gerbig selects a new supplier for its shampoos and conditioners.
4. d. The controller for Gerbig pays the bill for a catered lunch at its annual training event for employees.
5. e.  Gerbig files its articles of incorporation with the state.
6. f. Gerbig acquires a new stainless steel tub by signing a note payable with PetStar, a supplier of pet grooming supplies and products.
7. g.  Maggie Cramer, a customer, signs a contract for next year's dog grooming with Gerbig.
8. h.  Gerbig pays its employees an annual bonus on December 31.