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Katyanochek1 [597]
3 years ago
6

Dan Watson started a small merchandising business in 2018. The business experienced the following events during its first year o

f operation. Assume that Watson uses the perpetual inventory system. Acquired $30,000 cash from the issue of common stock. Purchased inventory for $18,000 cash. Sold inventory costing $15,000 for $32,000 cash. Required Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. Prepare an income statement for 2018 (use the multistep format). What is the amount of total assets at the end of the period?
Business
1 answer:
Jet001 [13]3 years ago
8 0

Answer:

<u>Horizontal statemtent:</u>

         Assets                      =   Liabilities    +    Equity

1)       30,000                      =        0            +   30,000

2) 18,000- 18,000              =        0            +      0

3)        17,000                     =        0            +   17,000

<u>Cash flow:</u>

+30,000 Financing

Operating

collected from customer 32,000

paid to suppliers             (18,000)

           net                         14,000

total cash flow                44,000

Income statment

sales revenue 32,000

COGS              (15,000)

income              17,000

Total assets:  47,000 (44,000 cash + 3,000 inventory)

Explanation:

assets:

1) +30,000 cash from common stock

2) 18,000 inventory - 18,000 cash = 0 effect on total assets

3) 32,000 cash - 15,000 inventory = 17,000

total assets: 30,000 + 17,000 = 47,000

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Your grandparents deposit $2,000 each year on your birthday, starting the day you are born, in an account that pays 7% interest
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Answer:

The money you will have is $98020.

Explanation:

It is given that grandparents deposit $2,000 each year on birthday and the account pays 7% interest compounded annually also the time is 21 years.

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For the first birthday the amount after 21 yr will be:

A=2000(1+\frac{7}{100})^{21}

Similarly for the second birthday amount after 20yr will be:

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likewise, the last compound will be:

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The total value of such compounding would be :

\text {Total amount}=2000(1+\frac{7}{100})^{21}+2000(1+\frac{7}{100})^{20}...2000(1+\frac{7}{100})^{1}

\text {Total amount}=2000[(1+\frac{7}{100})^{21}+(1+\frac{7}{100})^{20}...(1+\frac{7}{100})^{1}]

\text{Total amount} \approx 2000(48.01)

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The total amount just after your grandparents make their​ deposit  is:

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3 years ago
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