Ramirez Company Experienced the Following Events During 2015

question 113

Essay

Ramirez Company experienced the following events during 2015:
1.Acquired $50,000 cash by issuing common stock
2.Borrowed $25,000 cash from a creditor
3.Provided services to customers for $38,000 cash
4.Paid $32,000 cash for operating expenses
5.Paid a cash dividend of $2,500 to stockholders
6.Purchased land with cash,$30,000
Required:
a)Show how each of these events affects the accounting equation.Precede the amount with a minus sign if the event reduces that section of the equation.Enter NA for items not affected.
The first event is done as an example.
b)Calculate the total amount of assets,liabilities,common stock,and retained earnings at the end of the period.

Distinguish between the short-term and long-term impacts of market changes on price and quantity.

Evaluate the effects of government policies and global events on market equilibrium.

Identify the unique characteristics and outcomes of perfectly competitive markets.

Understand the mechanism of price signals and how they guide the allocation of resources in a market economy.

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Definitions:

Separate Cash Flow

Separate cash flow refers to the identification and analysis of individual components of the total cash flow of an entity or project.

Financial Calculators

Electronic tools designed to perform financial functions and calculations, such as interest rates, loan payments, investment values, and more.

Chief Financial Officers

A senior executive responsible for managing the financial actions of a company, including financial planning and record-keeping.

Primary Methods

Fundamental techniques or strategies applied in a field of study or work, often referring to basic approaches in research or problem-solving.