Question

The Candle Shop experienced the following events during its first year of operations, Year1

Answer 1

Answer:

a) 1. Acquired cash by issuing common stock  ⇒ Asset Source

2. Paid a cash dividend to the stockholders  ⇒ Asset Use

3. Paid cash for operating expenses  ⇒ Asset Use

4. Borrowed cash from a bank  ⇒ Asset Source  

5. Provided services and collected cash  ⇒ Asset Source

6. Purchased land with cash  ⇒ Asset Exchange

7. Determined that the market value of the land is higher than the historical cost  ⇒ Not applicable

 

b) I used an excel spreadsheet because there is not enough room here.  

Download pdf