Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1,000 common shares to Kelly in exchange for $17,000. (b) Borrowed $38,000
Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1,000 common shares to Kelly in exchange for $17,000. (b) Borrowed $38,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by signing check number 101 in the amount of $43,000 and signing a promissory note for $6,000 due in six months. This loan contains a clause ("covenant") that requires Business Sim Corporation (BSC) to maintain a ratio of current assets to current liabilities of at least 1.8. (d) Received $850 of supplles and promised to pay for them in 30 days. Required: 1. Analyze the accounting equation effects of each of these four transactions. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity a. b. C. C. d. Totals
Step by Step Solution
★★★★★
3.40 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
Assets 3hareholders liabiLities Equity 3No 3D a Ca...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started