a. The company was incorporated. Common stockholders invested $400,000 cash. b. Purchased merchandise inventory for cash, $25,000 c. Purchased merchandise inventory on open account. $20.000 d. Merchandise carried in inventory at a cost of $42,000 was sold for cash for $64,000 and on open account for $41,000, for a grand total of $105,000. Burn (not The Ivy Hall) carries and collects these accounts receivable. e. Collection of accounts receivable, $5,000. See transaction (d). f. Payments of accounts payable $15,000. See transaction (C). g. Special display equipment and fixtures were acquired on September 1 for $54,000. Their expected useful life was 36 months. This equipment was removable. Burn paid $24,000 as a down payment and signed a promissory note for $30,000. Also see transaction (k). h. On September 1, Burn signed a rental agreement with The Ivy Hall. The agreement called for a flat $1.000 per month, payable quarterly in advance. Therefore, Burn paid $3,000 cash on September 1. i. The rental agreement also called for a payment of 12% of all sales. This payment was in addition to the flat $1,000 per month. In this way, The Ivy Hall would share in any success of the venture and be compensated for general services such as cleaning and utilities. This payment was to be made in cash on the last day of each month as soon as the sales for the month had been tabulated. Therefore, Burn made the payment on September 30. j. Employee wages and sales commissions were all paid for in cash. The amount was $43,000. k. Depreciation expense of $1,500 was recognized ($54,000/36 months). See transaction (g). 1. The expiration of an appropriate amount of prepaid rental services was recognized. See transaction (h). The Burn Company was incorporated on September 1, 20X0. Burn had 5 holders of common stock. Rhonda Burn, the president and chief executive officer, held 58% of the shares. The company rented space in chain discount stores and specialized in selling ladies' accessories. Burn's first location was in a store that was part of The Ivy Hall in Cedar Rapids. The following events occurred during September: (Click the icon to view the events and transactions.) Requirements 1. Prepare an analysis of Burn Company's transactions. 2. Prepare a balance sheet as of September 30, 20X0, and an income statement for the month of September. Ignore income taxes. 3. Given these sparse facts, analyze Burn's performance for September and its financial position as of September 30, 20X0 Requirement 1. Prepare an analysis of Burn Company's transactions. Enter the events into Burn Company's accounting equation one transaction at a time. For transaction d., enter the sale on line d1. and the cost of the sale on line d2. One you have entered all of the events into the accounting equation, calculate the ending balance of each account. (Leave any unused cells blank. Enter decreases with a minus sign or parentheses and leave any unused cells blank. Abbreviations have been used in the heading of the table below.) Assets Liabilities + Stockholders' Equity Merch. Inv. Prepaid Rent Equip and Fixt Paid-in Capital Retained + Earnings Cash + A/R + + + = N/P A/P + + + | + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Choose from any list or enter any number in the input fields and then continue to the next question. The Burn Company was incorporated on September 1, 20X0. Burn had 5 holders of common stock. Rhonda Burn, the president and chief executive officer, held 58% of the shares. The company rented space in chain discount stores and specialized in selling ladies' accessories. Burn's first location was in a store that was part of The Ivy Hall in Cedar Rapids. The following events occurred during September: A (Click the icon to view the events and transactions.) Requirements 1. Prepare an analysis of Burn Company's transactions 2. Prepare a balance sheet as of September 30, 20X0, and an income statement for the month of September. Ignore income taxes. 3. Given these sparse facts, analyze Burn's performance for September and its financial position as of September 30, 20X0. A More Info - X ne dl. and the cost of the sale on line d2. One you have entered all of the events into the accounting equation, calculate the ending unused cells blank. Abbreviations have been used in the heading of the table below.) Retained Earnings a. The company was incorporated. Common stockholders invested $400,000 cash. b. Purchased merchandise inventory for cash, $25.000 C. Purchased merchandise inventory on open account, $20,000. d. Merchandise carried in inventory at a cost of $42,000 was sold for cash for $64,000 and on open account for $41,000, for a grand total of $105,000. Burn (not The Ivy Hall) carries and collects these accounts receivable. e. Collection of accounts receivable, $5,000. See transaction (d). f. Payments of accounts payable $15,000. See transaction (c). g. Special display equipment and fixtures were acquired on September 1 for $54,000. Their expected useful life was 36 months. This equipment was removable. Burn paid $24,000 as a down payment and signed a promissory note for $30,000. Also see transaction (k). h. On September 1, Burn signed a rental agreement with The Ivy Hall. The agreement called for a flat $1,000 per month, payable quarterly in advance. Therefore, Burn paid $3,000 cash on September 1. i. The rental agreement also called for a payment of 12% of all sales. This payment was in addition to the flat $1,000 per month. In this way, The Ivy Hall would share in any success of the venture and be compensated for general services such as cleaning and utilities. This payment was to be made in cash on the last day of each month as soon as the sales for the month had been tabulated. Therefore, Burn made the payment on September 30. j. Employee wages and sales commissions were all paid for in cash. The amount was $43,000. k. Depreciation expense of $1,500 was recognized ($54,000/36 months). See transaction (g). 1. The expiration of an appropriate amount of prepaid rental services was recognized. See transaction (h). www. dugun Ore On September unser e Wheeled for o D e Maten Now. p. . . w DELL