Falcon Services Was Organized on October 1, 2016

question 67

Essay

Falcon Services was organized on October 1, 2016.The company received a contribution of $2,000 from each of the two principal owners.During the month, Falcon Services provided services for cash of $1,400 and services on account for $600, received $350 from customers in payment of their accounts, purchased supplies on account for $800 and equipment on account for $1,050, received a utility bill for $150 that will not be paid until November, and paid the full amount due on the equipment.
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REQUIRED: Show your work to determine the company's Cash balance on October 31, 2016.

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Definitions:

Stock Issue Costs

Expenses associated with issuing new shares of stock, including underwriting, legal, and registration fees.

Contingent Consideration

An obligation of a buyer to transfer additional assets or equity interests to the seller if future events occur or conditions are met after a business combination.

Bargain Purchase

A transaction where an asset is purchased or acquired for significantly less than its estimated fair market value.

Indirect Costs

Expenses that are not directly traceable to a specific product or service but are necessary for the business's general operation.