Assume that you recently obtained a part-time accounting position at the corporate office of Estée Lauder headquartered

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Assume that you recently obtained a part-time accounting position at the corporate office of Estée Lauder headquartered in New York. Estée Lauder is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance, and hair care products including brands such as Estée Lauder, Aramis, and Clinique. The following table summarizes accounts and their balances (in millions) reported by Estée Lauder in a recent June 30 balance sheet.
align="center">Assume that you recently obtained a part-time accounting position at

Determine how Estée Lauder's balance sheet would change if the company were to enter into the following transactions (amounts in millions) during July:
July 5 Purchase an additional research and development facility at a cost of $25 by signing a note that becomes payable in four years.
July 11 Use $10 cash to repay one of the short-term loans.
July 25 Receive an additional $30 cash from owners.
July 27 Use cash to buy land for $13.
Required:
Estée Lauder's controller has asked you to create a spreadsheet in which to display:
1. The account balances at June 30.
2. The effects of the four July transactions.
3. Totals that combine the June 30 balances with the July transactions. You think you might be ready to tackle this assignment, but just to be sure, you e-mail your friend Sally for advice. Here's her reply.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  book-img-for-question

Principles Of Accounting

ISBN: 9780077300456

1st Edition

Authors: Robert Libby, Patricia Libby, Fred Phillips, Stacey Whitecotton

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