Which of the following events result in an accounting transaction for Clothing Ltd? 1. Clothing Ltd signed
Question:
Which of the following events result in an accounting transaction for Clothing Ltd?
1. Clothing Ltd signed a contract to hire a new store manager for a salary of $150 000 per annum. The manager will start work next month.
2. The founder of Clothing Ltd, who is also a major shareholder, purchased additional stock in another company.
3. Clothing Ltd borrowed $230 000 from a local bank.
4. Clothing Ltd purchased a sewing machine, which it paid for by signing a note payable.
5. Clothing Ltd issued 10 000 shares to a private investor, who is also a car business owner, in return for a new delivery truck.
6. Two investors in Clothing Ltd sold their stock to another investor.
7. Clothing Ltd ordered some fabric to be delivered next week.
8. Clothing Ltd lent $250 000 to a member of the board of directors.
Step by Step Answer:
Financial Accounting An Integrated Approach
ISBN: 9780170411028
7th Edition
Authors: Ken Trotman, Elizabeth Carson