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:

Moral Excellence

The quality of performing actions that are considered ethically good or virtuous, often associated with integrity, honesty, and uprightness.

Ethical Beliefs

The moral convictions or principles that guide an individual's or community's behavior and decision-making.

Utilitarianism

A philosophical concept that holds the best action is the one that maximizes utility, generally defined as that which produces the greatest well-being of the greatest number of people.

Deontology

An ethical theory that suggests actions are morally right because of their characteristics, not just their outcomes, emphasizing duties and rules.