The Following Information Should Be Used for Questions Transactions
1

question 53

Short Answer

The following information should be used for questions.
On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:
$\begin{array}{|l|l|}\hline \text { Cash } & \text { Accounts Payable } \\\hline \text { Accounts Receivable } & \text { Shawn Dahl, Capital } \\\hline \text { Office Equipment } & \text { Revenue } \\\hline \text { Canoe and Kayak Equipment } & \text { Expenses } \\\hline\end{array}$
Transactions
1.Shawn Dahl invested $50,000 in cash to open the business
2.Paid $14,200 in cash for the purchase of kayak and canoe equipment
3.Paid $2,200 in cash for rent expense
4.Purchased additional kayak and canoe equipment for $4,900 on credit
5.Received $4,600 in cash for kayak rentals
6.Rented canoes and kayaks for $3,400 on account
7.Purchased office equipment for $375 in cash
8.Received $1,350 in cash from credit clients
9.Shawn Dahl withdrew $1,800 in cash for personal expenses
-Based on the information shown in transaction #4 above, indicate the accounts affected and use plus and minus to show the changes caused by the transaction.

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Definitions:

Doctrine of Ultra Vires

A legal principle stating that acts done beyond the scope of power of a corporation or governmental entity are invalid or void.

Corporate Law

The body of laws, regulations, and practices that govern the formation and operation of corporations.

Dividend Tax Credit

A tax credit that investors can claim in many jurisdictions for taxes already paid by a corporation on the dividends it distributes to shareholders.

Tax Legislation

Laws and regulations governing the imposition, administration, and enforcement of taxes by the government.