The Following Transactions Apply to the Garber Corporation for 2015,its

question 7

Essay

The following transactions apply to the Garber Corporation for 2015,its first year in business.
1)Issued stock to investors,$48,000.
2)The company borrowed $42,000 cash from the bank.
3)Services were provided to customers and $50,000 cash was received.
4)The company acquired land for $44,000.
5)The company paid $34,000 rent for the building where it does its business.
6)The company paid $3,200 for supplies that were used during the period.
7)The company sold the land acquired in item 5 for $44,000.
8)A dividend of $1,000 was paid to the owners.
9)Repaid $20,000 of the loan described in item 2.
Required:
a.Prepare an income statement,statement of changes in equity,and balance sheet for 2015.Precede the amount with a minus sign if the transaction reduces that section of the financial statement.
b.Prepare a statement of cash flows for 2015.

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Definitions:

Umami

One of the five basic tastes, often described as savory or meaty, and is a flavor enhancer found in foods like tomatoes and cheese.

Basic Taste

One of the fundamental groups of taste sensations, including sweet, sour, salty, bitter, and umami.

Gestalt Principle

A theory in psychology that proposes the human brain sees objects in their entirety before perceiving their individual parts, suggesting that the whole is greater than the sum of its parts.

Continuity

The unbroken and consistent existence or operation of something over a period of time.