Question $12$ of $12$

Transaction $1$: issued $8,000$ shares of $$4$ par value common stock for $40,000$ cash

Transaction $2$:

Provided services for $$90,000$ cash.

Account

Transaction $3$;

Transaction $3$:

Signing of a Note Payable:

$6\%$ annual interest rate.

Annual principal payment of $$35,000$ each December $31$ for $4$ years

Annual interest payment each December $31$ for $4$ years.

Account

Transaction $4$:

Interest incurred for the first full year of the note payable. Year $1$ interest was paid in full on December $31$ st$.$

Account

Transaction $5$:

Principal repayment on note payable. Year $1$ principal was paid in full on December $31$ st$.$

Record the totals for the following accounts based on the above transactions:

What are Total Assets at the end of YR $1?$ $

What are Total Liabilities at the end of YR $1?$ $

What are Total Stockholders' Equity at the end of YR $1$$

What is the total of Net Income at the end of YR $1$$

PART $2$:

Related to the note payable, how much interest expense will Brown Limited report in YR $2?$ $

PART $3$:

Related to the note payable, what will be the principal balance of the note on $1/1/$YR $3?$ $

PART $4$:

Brown Limited is considering issuing $2,000$ shares of $$73$ par value, $4\%$ cumulative preferred stock. If issued, what would the dividend amount be for preferred stockholders at the end of the year? $

$\backslash$table$[[$Transaction $2,$Amount$],[$Effect on Retained Earnings:,$rown Limited was formed on January $1,$ Year $1.$ Assume that each of the below events took place on January $1,$ Year $1$ unless otherwise noted.

PART $1$:

Choose the appropriate balance sheet general ledger accounts to record the below transactions as they would appear in the accounting equation. Enter any decreases as negative numbers with the negative sign e$.$g$.,-10,000.$ Negative numbers will automatically convert to be within parentheses in the first part of the question. For the Effect on Retained Earnings and Net Income, enter decreases as negative numbers with the negative sign; however they will not show within parentheses. If the Effect on Retained Earnings or Net Income is zero enter $0.$ Do not leave cells blank.

Brown Limited was formed on January $1,$ Year $1.$ Assume that each of the below events took place on January $1,$ Year $1$ unless otherwise noted.

PART $1$:

Choose the appropriate balance sheet general ledger accounts to record the below transactions as they would appear in the accounting equation. Enter any decreases as negative numbers with the negative sign $(-)($e$.$g$.,-10,000).$ Negative numbers will automatically convert to be within parentheses in the first part of the question. For the Effect on Retained Earnings and Net Income, enter decreases as negative numbers with the negative sign; however they will not show within parentheses. If the Effect on Retained Earnings or Net Income is zero enter $0.$ Do not leave cells blank.