The Analytical Framework Used to Evaluate Transactions Is Reproduced Below

question 17

Essay

The analytical framework used to evaluate transactions is reproduced below:
Using this analytical framework indicate the effect of each of the following transactions for Wisco Corporation:
1.Wisco sold merchandise for $225,000 on account which cost $170,000 to manufacture.
2.Wisco purchased for cash $110,000 of raw material inventory.
3.The company paid $25,000 in advance for an advertising campaign that would be aired next year.
4.Wisco paid its employees $15,000 for the month.
5.The company purchased $7,000 of supplies on account.
6.Wisco issued $25,000 of long-term debt.
7.The company used $10,000 of excess cash to purchase marketable securities.
8.Wisco purchased a machine for $22,000 in cash.
9.At the end of the year Wisco paid dividends of $5,000.
10.At the end of the year the marketable securities that Wisco purchased in transaction 7 were now worth $11,500.
11.Depreciation for the period was $1,500.

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Definitions:

Ideology

Is a system of ideas, beliefs, values, and ideals that reflects the social needs and aspirations of an individual, group, class, or culture.

Psychological Investment

The emotional or cognitive commitment one places in an endeavor, relationship, belief, or object, which can significantly influence their thoughts and behaviors.

Self-concept

Self-concept is an individual's perception of themselves, including beliefs about one’s abilities, appearance, and personality.

Intrapsychic Development

Psychological development and processes occurring within the mind or psyche, often related to the formation of the self and identity.