Barley & Hops Company was formed in 2014. During the year the company had the following events occur:
1. The company issued $100,000 in common shares for cash.
2. The company purchased equipment for $15,000, paying $5,000 down and signing a 1-year, 8% note for the balance.
3. The company hired 4 employees.
4. The company had sales of $250,000. All sales were on account.
5. The company incurred the following expenses: rent: $2,000, salaries: $20,000, advertising $2,000 and utilities $4,000. All expenses were paid in cash.
Definitions:
Q9: To maintain effective controls over cash, who
Q22: Which of the following would not be
Q46: IFRS requires significant components of a building
Q52: Cash is the item that is budgeted
Q64: Claims held by the shareholders (owners) of
Q70: A ledger is the first place where
Q75: Proper separation of duties in an organization
Q98: The Key West Group uses the lower
Q100: Debits are always recorded (journalized) after credits.
Q105: If liabilities increase $120,000 during a given