Question
Record the following transactions for Mouser Pet Foods, Inc., in the financial statements effects template below (in thousands). Sell stock in company for $78,000 Obtain
Record the following transactions for Mouser Pet Foods, Inc., in the financial statements effects template below (in thousands).
Sell stock in company for $78,000
Obtain long-term bank loan of $30,000.
Purchase manufacturing equipment for $20,400 cash.
Rent manufacturing and warehousing space and pay $34,800 in advance for the year.
Purchase $30,000 of inventory, paying $6,000 in cash and the remaining amount on credit.
Sell half of the inventory purchased in Transaction e for $33,900 on account.
Pay $24,000 to creditors.
Make loan payment of $4,800 of which interest is $480 and the rest is principal.
| ($ thousands) | Balance Sheet | Income Statement
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| Transaction | Cash Asset | + | Noncash Assets | = | Liabil- ities | + | Contrib. Capital | + | Earned Capital | Rev-enues |
| Expen-ses | = | Net Income |
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Risk Sensitive Investment Management
Authors: Mark H A Davis, Sébastien Lleo
1st Edition
9814578037, 978-9814578035
