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:

Inverse Demand Function

A mathematical representation that describes the price of a good or service as a function of the quantity demanded, highlighting how prices can adjust based on consumer demand.

Consumer's Surplus

The gap between what consumers are prepared and capable of paying for a product or service and what they end up spending.

Used Cars

Pre-owned vehicles that have been previously registered and used, often sold through various markets and dealerships.

Demand Segmentation

The process of dividing a market into distinct groups of buyers based on different demands and characteristics, allowing for more targeted and effective marketing strategies.