slicknic86
Sep 4, 2009, 12:30 PM
Exercise 1-3A Identifying the reporting entities [L.O. 2]
Carlos Bueso recently started a business. During the first few days of operation, Mr. Bueso transferred $30,000 from his personal account into a business account for a company he named Bueso Enterprises. Bueso Enterprises borrowed $40,000 from the State Bank of Texas. Mr. Bueso's father-in-law, James Bright, invested $64,000 into the business for which he received a 25 percent ownership interest. Bueso Enterprises purchased a building from Leigh Realty Company. The building cost $120,000 cash. Bueso Enterprises earned $28,000 in revenue from the company's customers and paid its employees $25,000 for salaries expense.
Required:
Mention what happened to the cash accounts of the following entities.
Entities
Distribution of Cash
Mr. Bueso (personal account)
Personal account was (Click for List) increased decreased by the $30,000 cash deposited in the Bueso Enterprises' business account.
Bueso Enterprises
Cash account (Click for List) increased decreased by the $30,000 cash deposited by Mr. Bueso.
Cash account (Click for List) decreased increased by $40,000 cash borrowed from State Bank of Texas.
Cash account (Click for List) increased decreased by $64,000 cash invested by James Bright.
Cash account (Click for List) decreased increased by $120,000 cash used to purchase building.
Cash account (Click for List) increased decreased by $28,000 cash revenue earned.
Cash (Click for List) increased decreased by $25,000 when employees received payment for salaries.
State Bank of Texas
Cash account (Click for List) decreased increased by $40,000 cash loaned to Bueso Enterprises.
James Bright, father-in-law, personal account
Cash (Click for List) decreased increased by $64,000 cash invested in Bueso Enterprises.
Leigh Realty Company
Cash (Click for List) increased decreased by $120,000 received from Bueso Enterprises to purchase building.
Bueso Enterprises' customers
Cash (Click for List) decreased increased by $28,000 when customers paid for services performed.
Bueso Enterprises' employees
Cash (Click for List) decreased increased by $25,000 when employees received payment
The answer is either increased or decreased
Carlos Bueso recently started a business. During the first few days of operation, Mr. Bueso transferred $30,000 from his personal account into a business account for a company he named Bueso Enterprises. Bueso Enterprises borrowed $40,000 from the State Bank of Texas. Mr. Bueso's father-in-law, James Bright, invested $64,000 into the business for which he received a 25 percent ownership interest. Bueso Enterprises purchased a building from Leigh Realty Company. The building cost $120,000 cash. Bueso Enterprises earned $28,000 in revenue from the company's customers and paid its employees $25,000 for salaries expense.
Required:
Mention what happened to the cash accounts of the following entities.
Entities
Distribution of Cash
Mr. Bueso (personal account)
Personal account was (Click for List) increased decreased by the $30,000 cash deposited in the Bueso Enterprises' business account.
Bueso Enterprises
Cash account (Click for List) increased decreased by the $30,000 cash deposited by Mr. Bueso.
Cash account (Click for List) decreased increased by $40,000 cash borrowed from State Bank of Texas.
Cash account (Click for List) increased decreased by $64,000 cash invested by James Bright.
Cash account (Click for List) decreased increased by $120,000 cash used to purchase building.
Cash account (Click for List) increased decreased by $28,000 cash revenue earned.
Cash (Click for List) increased decreased by $25,000 when employees received payment for salaries.
State Bank of Texas
Cash account (Click for List) decreased increased by $40,000 cash loaned to Bueso Enterprises.
James Bright, father-in-law, personal account
Cash (Click for List) decreased increased by $64,000 cash invested in Bueso Enterprises.
Leigh Realty Company
Cash (Click for List) increased decreased by $120,000 received from Bueso Enterprises to purchase building.
Bueso Enterprises' customers
Cash (Click for List) decreased increased by $28,000 when customers paid for services performed.
Bueso Enterprises' employees
Cash (Click for List) decreased increased by $25,000 when employees received payment
The answer is either increased or decreased