The Analytical Framework Used to Evaluate Transactions Is Reproduced Below

question 28

Essay

The analytical framework used to evaluate transactions is reproduced below:
$\begin{array}{ccc}\text { Cash }+\text { Non-Cash }=\text { Liabilities } & +\text { Contributed } & +\text { Accumulated Other }+&\text { Retained } \\\text { Assets } & \text { Capital } & \text { Comprehensive }&\text { Earnings } \\& & \text { Income }\end{array}$



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.

---

Definitions:

Overstating Claims

The act of exaggerating or making assertions that go beyond the facts or reality.

Graphics

Visual components used to create, represent, or enhance textual information, including illustrations, diagrams, and photos.

Nutritional Value

The content of essential vitamins, minerals, proteins, fats, and carbohydrates in a food item, affecting its contribution to a healthy diet.

Fast Food

A type of food that is prepared and served quickly, typically in establishments known for minimal table service and a focus on convenience.