Question
The following transactions apply to Bobs Bike Shop for 2016, its first year of operations: 1. Acquired $35,000 cash from the issue of common stock.
The following transactions apply to Bobs Bike Shop for 2016, its first year of operations:
1. | Acquired $35,000 cash from the issue of common stock. | ||||||||||
2. | Acquired $9,600 of merchandise from Bob Hall, the owner, who had acquired the merchandise prior to opening the shop. Issued common stock to Bob in exchange for the merchandise inventory. | ||||||||||
3. | Purchased $85,000 of inventory on account. | ||||||||||
4. | Paid $2,800 for radio ads. | ||||||||||
5. | Sold inventory for $165,000 cash. | ||||||||||
6. | Paid $28,000 in salary to a part-time salesperson. | ||||||||||
7. | Paid $65,000 on accounts payable (see Event 3). | ||||||||||
8. | Physically counted inventory, which indicated that $28,500 of inventory was on hand at the end of the accounting period.
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