Bellamy Inc

question 42

Short Answer

Bellamy Inc. began operations in April of the current year with the following transactions occurring during the month:
Apr 1 Sold 15,000 common shares for $13 per share.
2 Paid $6,300 for three months' rent in advance.
5 Purchased $25,000 of equipment paying 25% down and agreeing to pay the balance in two years.
6 Purchased inventory for $19,000 on credit.
10 Sold on account $16,000 of inventory for $23,000.
15 Paid wages of $1,200.
20 Collected $8,000 from customers on account.
25 Paid suppliers $3,000 on account.
31 Paid wages of $1,100.
31 Recognized one month's rent expense.
31 Recognized one month's equipment depreciation expense. The estimated salvage value is $4,000 and the estimated useful life is 5 years.
Instructions
Indicate the effects of these transactions on the balance sheet equation.

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Definitions:

Status Construction

The process through which social hierarchies and positions are created and maintained within societies.

Imposter Phenomenon

A psychological pattern in which an individual doubts their accomplishments and has a persistent internalized fear of being exposed as a "fraud."

Equity

When people receive rewards in proportion to the contributions they make toward the attainment of group goals.

Generalized Exchange

A type of social interchange where goods or services are provided to one member of a group without the expectation of a direct reciprocal action from the receiver.