Sara Obermeyer Decides to Open a Pizza Parlor near the Local

question 93

Essay

Sara Obermeyer decides to open a pizza parlor near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their effect on the basic accounting equation. Record each transaction by increasing (+) or decreasing (-) the dollar amount of each item affected. Indicate the new balance of each item after a transaction is recorded. It is not necessary to identify the cause of changes in stockholders' equity.
Transactions
(1) Sara Obermeyer invests $25,000 cash in exchange for common stock to start a pizza parlor business on June 1.
(2) Purchased equipment for $4,000 paying $2,000 in cash and the remainder due in 30 days.
(3) Purchased supplies for $1,200 cash.
(4) Received a bill from Campus News for $200 for advertising in the campus newspaper.
(5) Cash receipts from customers for pizza sales amounted to $1,500.
(6) Paid salaries of $200 to student workers.
(7) Billed the Tiger Football Team $300 for pizzas ordered.
(8) Paid $200 to Campus News for advertising that was previously billed in Transaction 4.
(9) Sara Obermeyer was paid dividends of $1,200.
(10) Incurred utility expenses for month on account, $100.

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Definitions:

Megacities

Urban areas with a population of over 10 million people, often characterized by significant economic, political, and cultural influence.

World Population

The total number of living humans on Earth at a given time, which influences global markets, resources demand, and economic dynamics.

Alternating Treatments Design

A method for graphing behavioral observations that permits analysis of the differential effectiveness of more than one intervention on a target behavior. Unlike the changing conditions design, in which interventions are introduced consecutively, one intervention is rapidly substituted for another, sometimes on a session-to-session basis.

Changing Conditions Design

A method of graphing behavioral observations used to determine the effectiveness of two or more interventions to positively affect a target behavior. A refers to the baseline, B designates the intervention, and C designates the application of a second intervention. In a changing conditions design, different interventions are implemented consecutively without ever returning to baseline conditions. Sometimes called an ABC design.