Rosemont Company Began Operations on January 1, Year 1, and on That

question 148

Essay

Rosemont Company began operations on January 1, Year 1, and on that date issued stock for $60,000 cash. In addition, Rosemont borrowed $50,000 cash from the local bank. The company provided services to its customers during Year 1 and received $35,000. It purchased land for $70,000. During the year, it paid $10,000 cash for salaries. Stockholders were paid cash dividends of $8,000 during the year.
Required:a)List the transactions from the information above (for example, issued common stock for $60,000)and indicate in which section of the statement of cash flows each transaction would be reported.b)What would the amount be for net cash flows from operating activities?c)What would be the end-of-year balance for the cash account?d)What would be the amount of the total assets for the Rosemont Company at the end of Year 1?e)What would be the end-of-year balance for the Retained Earnings account?

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Definitions:

Product-Market Growth Analysis

A technique for identifying growth opportunities by analyzing existing and potential products and markets.

Geographic Markets

Markets that are segmented or defined by geographical boundaries, which can range from local to global.

Basic Business Strategy

A foundational approach that outlines how a business aims to achieve its goals, compete in the market, and satisfy its customers.

Customer Needs

The recognized necessities or desires that drive consumers to seek out products or services for satisfaction or solution.