Ramon Company experienced the following events during 2012:
1. Acquired $50,000 cash by issuing common stock
2. Borrowed $15,000 cash from a creditor
3. Provided services to customers for $33,000 cash
4. Paid $27,000 cash for operating expenses
5. Paid a cash dividend of $1,500 to stockholders
6. Purchased land with cash, $25,000
Required:
a) Show how each of these events affects the accounting equation. Show amounts and increases or decreases, using + for increases and - for decreases and NA for no effect. The first event is done as an example.
b) Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.

Question

Quizplus · Accepted Answer

The Answer of Ramon Company experienced the following events during 2012:
1. Acquired $50,000 cash by issuing common stock
2. Borrowed $15,000 cash from a creditor
3. Provided services to customers for $33,000 cash
4. Paid $27,000 cash for operating expenses
5. Paid a cash dividend of $1,500 to stockholders
6. Purchased land with cash, $25,000
Required:
a) Show how each of these events affects the accounting equation. Show amounts and increases or decreases, using + for increases and - for decreases and NA for no effect. The first event is done as an example.
b) Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.

Ramon Company Experienced the Following Events During 2012