Question
Required: Sweet Shop Company is a chain of candy stores that has been in operation for the past ten years. For each of the
Required: Sweet Shop Company is a chain of candy stores that has been in operation for the past ten years. For each of the following transactions, provide the accounting effects of the adjustments required (Enter any decreases to account balances with a minus sign.) a. Ordered and received $12,000 worth of cotton candy machines from Candy Makers Incorporated, which Sweet Shop Company will pay for in 45 days. b. Sent a check for $6,000 to Candy Makers Incorporated for the cotton candy machines from (a) c. Received $400 from customers who bought candy on account in previous months. d. To help raise funds for store upgrades estimated to cost $20,000, Sweet Shop Company issued 1,000 common shares for $15 each to existing stockholders e. Sweet Shop Company bought ice cream trucks for $60,000 total, paying $10,000 cash and signing a long-term note for $50,000. d Total Assets Liabilities Stockholders' Equity
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