The Following Events Occurred for Ringgold Company During 2015,its First

question 75

Essay

The following events occurred for Ringgold Company during 2015,its first year in operation:
1.Issued stock to investors for $45,000 cash
2.Borrowed $25,000 cash from the local bank
3.Provided services to its customers and received $32,000 cash
4.Paid expenses of $28,000
5.Paid $22,000 cash for land
6.Paid dividend of $12,000 to stockholders
7.Repaid $10,000 of the loan listed in item 2
Required:
Show the effects of the above transactions on the accounting equation,below.Include dollar amounts of increases and decreases.Precede the amount with a minus sign if the event reduces that section of the equation.Enter NA for items not affected.If one section is affected by an increase and also a decrease,enter each part on a separate line.
The first event is done for you.After entering all the events,calculate the total amounts of assets,liabilities,and equity at the end of the year.

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Definitions:

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Total Revenue

The total amount of money received by a firm from selling a certain quantity of goods or services, calculated as the price per unit times the number of units sold.

Marginal Revenue Curve

A graphical representation showing the change in total revenue that results from selling one additional unit of a good or service.