Elena Garcia established a small business, Garcia Training Centre, to teach individuals how to use spreadsheet analysis, word processing, and other techniques on microcomputers.

a. Garcia began by transferring the following assets to the business in exchange for 39,200 shares at a nominal value of 1 each:

b. Paid the first month's rent on a small storefront, 560 .

c. Purchased computer software on credit, 1,500 .

d. Paid for an advertisement in the local newspaper, 200 .

e. Received enrolment applications from five students for a five-day course to start next week. Each student will pay 400 if he or she actually begins the course.

f. Paid wages to a part-time helper, 300 .
g. Received cash payments from three of the students enrolled in \(\mathbf{e}, 1,200\).
h. Billed the two other students in \(\mathbf{e}\), who attended but did not pay in cash, 800 .
i. Paid the electricity bill for the current month, 220 .
j. Made a payment on the software purchased in \(\mathbf{c}, 500\).
k. Received payment from one student billed in \(\mathbf{h}, 400\).
1. Purchased a second microcomputer for cash, 9,400 .
\(\mathrm{m}\). Declared and paid a dividend of 600 .
REQUIRED LO 1 Transaction Analysis LO 4 and Concepts

Transcribed Image Text:

Cash 18,100 Furniture 6,200 Microcomputer 14,600