Question
What are the accounting equations for: Transaction #1 Sunshine Publishers issues 100 shares of common stock for $4000 cash. Transaction #2: Sunshine publishers receives $2000
What are the accounting equations for:
Transaction #1 Sunshine Publishers issues 100 shares of common stock for $4000 cash.
Transaction #2: Sunshine publishers receives $2000 cash advance payment for books yet to be shipped & delivered (shipping is expected in five weeks).
Transaction #3: Sunshine publishers purchases $6000 of paper and ink to be used in their book manufacturing process. The purchase is made on account.
Transaction #4: Sunshine publishers ships & delivers the books that were ordered for $2000 in transaction #2, completing their obligation to the customer. The cost of the inventory involved in the transaction is $800.
Transaction #5: Sunshine publishers records depreciation expense of $900.
Transaction #6: Sunshine publishers determines that their one press is becoming obsolete, and determine they need to write-down (i.e. reduce) its book value by $12,000.
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