Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Bassett, Inc. went into business on October 1, 2020. During its first three months in business, it had the following transactions: Oct. 1, 2020 -

image text in transcribed

Bassett, Inc. went into business on October 1, 2020. During its first three months in business, it had the following transactions: Oct. 1, 2020 - Bassett, Inc. formed and received $40,000 from its equity investors. Oct. 1, 2020 - Bassett borrowed $60,000 and agreed to pay $66,000 back on October 1, 2022. Nov. 1, 2020 - Purchased land for $60,000 cash. Nov. 1, 2020 - Purchased equipment (5-year useful life, no salvage value) for $24,000 cash. Nov. 1, 2020 - Paid 3 months rent on a building for $9,000. Nov. 5, 2020 - Purchased inventory costing $24,000 on account. Nov. 12, 2020 - Sold $18,000 of inventory for $56,000 on account. Nov. 25, 2020 - Collected $30,000 of the account receivable. Nov. 25, 2020 - Paid the full amount of accounts payable. Dec. 1, 2020 - Paid employees $12,000 in cash. Dec. 15, 2020 - Sold two-thirds of the land for $36,000. Dec. 26, 2020 - Received a utility bill for $2,600, which will be paid in January, 2021. Dec. 31, 2020 - Paid a dividend of $10,000. How much are Bassett's investing cash flows during 2020

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuation The Art and Science of Corporate Investment Decisions

Authors: Sheridan Titman, John D. Martin

3rd edition

978-0133479522

Students also viewed these Accounting questions