Balance sheet
Not what you're looking for?
The January 1 balance sheet of the Marvin Company, an unincorporated business, is as follows:
Marvin Company
Balance Sheet
As of January 1
Assets Liabilities and Owners' Equity
Cash $25,000 Notes payable $20,000
Inventory 50,000 Capital 55,000
Total $75,000 Total $75,000
The following transactions took place in January:
Jan 4 Merchandise was sold for $12,000 cash that had cost $7,000.
Jan 6 To increase inventory, Marvin placed an order with Star Company for merchandise that would cost $7,000.
Jan 8 Marvin received the merchandise ordered from Star and agreed to pay the $7,000 in 30 days.
Jan 11 Merchandise costing $1,500 was sold for $2,500 in cash.
Jan 16 Merchandise costing $2,000 was sold for $3,400 on 30 day open account.
Jan 26 Marvin paid employees for the month $4,200 in cash.
Jan 29 Purchased land for $20,000 in cash.
Jan 31 Marvin purchased a two year insurance policy for $2,800 in cash.
Required:
Describe the impact of each transaction on the balance sheet, and prepare a new balance sheet as of January 31.
Purchase this Solution
Solution Summary
Solution describes the impact of each transaction on the balance sheet, and a new balance sheet as of January 31.
Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Operations Management
This quiz tests a student's knowledge about Operations Management
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.