The Following Business Events Occurred for Ringgold Company During Year

question 84

Essay

The following business events occurred for Ringgold Company during Year 1, its first year in operation:
1. Issued stock to investors for $45,000 cash2. Borrowed $25,000 cash from the local bank3. Provided services to its customers and received $32,000 cash4. Paid expenses of $28,0005. Paid $22,000 cash for land6. Paid dividend of $12,000 to stockholders7. Repaid $10,000 of the loan listed in item 2
Required:a)Show the effects of the above transactions on the accounting equation, below. Include dollar amounts of increases and decreases. Enter "NA" for elements of the accounting equation that are not affected by the transaction. If one element of the accounting equation is affected by an increase and also by a decrease, enter each part on a separate line (i.e. asset exchange transaction where one asset increases and another asset decreases). (The effects of the first transaction is shown below.)b)After entering all the events, calculate the total amounts of assets, liabilities, and equity at the end of the year.

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Definitions:

Pair of Equations

Two mathematical equations set up in relation to each other, often used to find the values of two unknown variables by solving them simultaneously.

Graphically

In a manner that uses diagrams, charts, maps, or other visual representations to explain or illustrate.

Set of Equations

A group of equations that are solved together, where each equation may have multiple variables.

Graphically

Representing data or information using visual elements such as charts, graphs, or diagrams.