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For the following transactions complete the table provided for Wildcat Company. 1. Beavs purchases common stock of Wildcat. 2. Beavs borrows from Wildcat by
For the following transactions complete the table provided for Wildcat Company. 1. Beavs purchases common stock of Wildcat. 2. Beavs borrows from Wildcat by signing a note. 3. Beavs performs services for Wildcat for $5,000 cash. 4. Beavs pays interest to Wildcat on borrowing. 5. Beavs buys inventory for $6,000 cash. 6. Beavs pays $4,500 cash for the current month. Instructions for table: For each transaction indicate whether the transaction increases, decreases, or has no effect (NE) on assets, liabilities, and/or owners' equity; identify effects on cash flows (category), net income or retained earnings. Example transaction: Company sells common stock for $200,000 cash. Effects on Balance Sheet Transaction Effect on Cash Flow A = L + SE Effect on Effect on Net Retained Earnings Income Example (See above) Financing inflow $200,000 No Effect $200,000 No Effect No Effect = + frem Sales
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Answer To complete the table for Wildcat Company lets examine each of the six transactions and determine their effects on the balance sheet assets lia...Get Instant Access to Expert-Tailored Solutions
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