The following business scenarios are independent from one another: 1. Chris Hann purchased an automobile from Classic

Question:

The following business scenarios are independent from one another:
1. Chris Hann purchased an automobile from Classic Auto Sales for $10,000.
2. Sal Pearl loaned $15,000 to the business in which he is a stockholder.
3. First State Bank paid interest to Strong Co. on a certificate of deposit that Strong Co. has invested at First State Bank.
4. Cindy's Restaurant paid the current utility bill of $135 to Midwest Utilities.
5. Sun Corp., borrowed $50,000 from City National Bank and used the funds to purchase land from Carriage Realty.
6. Sue Wang purchased $10,000 of of International Sales from the Chris Gordon loaned $6,000 cash to his daughter.
8. Motor Service Co. earned $20,000 in cash revenue.
9. Poy Imports paid $4,000 for salaries to each of its four employees.
10. Borg Inc. paid a cash of $4,000 to its sole shareholder, Mark Borg.

Required
a. For each scenario, create a list of all of the entities that are mentioned in the description.
b. Describe what happens to the cash account of each entity that you identified in Requirement a.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...