Chapter 2, Problem 8ME

Identifying Events as Accounting Transactions

Half Price Books is the country’s largest family-owned new and used bookstore chain. Do the fol­lowing events result in a recordable transaction for Half Price Books? Answer yes or no for each.

______ 1. Half Price Books bought an old Laundromat in Dallas.

______ 2. The privately held company issued stock to new investors.

______ 3. The company signed an agreement to rent store space in Columbia Plaza near Cleveland.

______ 4. The company paid for renovations to prepare its Seattle store for operations.

______ 5. The vice president of the company spoke at a literacy luncheon in Indiana, which contributed to. building the company’s reputation as a responsible company.